Company: BLTE
Filing Date: 2025-03-17
Form Type: 20-F
Source: 0001410578-25-000356
Chunk: 1

Company: BELITE BIO, INC
Filing Date: 2025-03-17
Form: 20-F
Item: Item 11
Chunk 1
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ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest and Credit Risk

We are exposed to market risk related to changes in interest rates. We had cash and investment of approximately US$31.7 million and US$113.5 million as of December 31, 2024. Interest-earning instruments carry a degree of interest rate risk and we are not exposed to other interest rate risk. We have not been exposed to material risks due to changes in interest rates, and we have not used any derivative financial instruments to manage our interest risk exposure.

Our credit risk is primarily attributable to cash. We mainly place or invest cash with reputable financial institutions in the jurisdictions where we and our subsidiaries are located. We do not believe that our cash has significant risk of default or illiquidity, and we will continually monitor the credit worthiness of these financial institutions. While we believe our cash does not contain excessive risk, future investments may be subject to adverse changes in market value.

As of December 31, 2023 and 2024, the aggregate amount of cash of US$56.8 million and US$10.2 million respectively, were held at major financial institutions located in the United States, and US$31.3 million and US$21.5 million, respectively, were deposited with major financial institutions located outside the United States. Additionally, as of December 31, 2024, the Company maintained short-term investments totaling US$113.5 million, comprising US$4.5 million in available-for-sale financial assets and US$108.9 million held-to-maturity financial assets. The Company is exposed to credit risk on its cash in the event of default by the financial institutions to the extent account balances exceed the amount insured respectively by the FDIC, Hong Kong Deposit Protection Board, Australia Prudential Regulation Authority (“ APRF”) and Singapore Deposit Insurance Corporation Limited (“ SDIC”). Furthermore, the Company is exposed to credit risk if a significant portion of these investments are allocated to a particular issuer, industry, or financial institution.

The Company’s cash is maintained in bank deposit accounts that exceed insured limits by US$28,257 thousand. The FDIC provides coverage of US$250 thousand per depositor. Hong Kong Deposit Protection Board provides a coverage of HK$800 thousand per depositor. The APRF provides a coverage of AU$250 thousand per depositor. The SDIC provides a coverage of SG$100 thousand per depositor. The Company believes that