We are exposed to the impact of interest rate changes, changes in foreign currency exchange rates and changes in the stock market. Interest Rate Risk Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio. The fair value of our investment portfolio would not be significantly affected by either a 10% increase or decrease in interest rates due mainly to the short term nature of most of our investment portfolio. However, our interest income can be sensitive to changes in the general level of U.S. and China interest rates since the majority of our funds are invested in instruments with maturities of less than one year. In a declining interest rate environment, as short term investments mature, reinvestment occurs at less favorable market rates. Given the short term nature of certain investments, anticipated declining interest rates will negatively impact our investment income. We maintain an investment portfolio of various holdings, types and maturities. We do not use derivative financial instruments. We place our cash investments in instruments that meet high credit quality standards, as specified in our investment policy guidelines. Our policy is to limit the risk of principal loss and to ensure the safety of invested funds by generally attempting to limit market risk. Our cash and cash equivalents are not subject to significant interest rate risk due to the short maturities of these instruments. As of December 31, 2025, the carrying value of our cash and cash equivalents approximated fair value. As of December 31, 2025 approximately $4.9 million, $10.0 million, $3.8 million and $15.1 million were held by subsidiaries in India, China, Japan and US. The table below represents carrying amounts and related weighted-average interest rates of our investment portfolio at December 31, 2025 and 2024: December 31, 2025 2024 (in thousands) Cash and cash equivalents $ 33,814 $ 43,913 Average interest rate 5.97 % 5.61 % Restricted cash short-term $ 6,574 $ 6,824 Average interest rate 1.30 % 2.35 % Short-term investments and notes receivable $ 1,022 $ 824 Average interest rate — % — % Restricted cash long-term $ 1,987 $ 2,406 Average interest rate 6.83 % 6.87 % Total investment securities $ 43,397 $ 53,967 Average interest rate 5.16 % 5.19 % Foreign Exchange Rate Risk As a multinational company, we conduct our business in a wide variety of currencies and are therefore subject to market risk for changes in foreign exchange rates. We expect to continue to expand our business globally and, as such, expect that an increasing proportion of our business may be denominated in currencies other than U.S. dollars. As a result, fluctuations in foreign currencies may have a material impact on our business, results of operations and financial condition. In 2025, approximately 38% of our foreign-currency denominated sales have been made in Japan, denominated in Japanese yen. The balance of our cash and cash equivalents held in Japanese Yen was $3.8 million at December 31, 2025. In 2025, approximately 31% of our foreign-currency denominated sales have been made in India, denominated in Indian rupees. The balance of our cash and cash equivalents held in Indian rupees was $4.9 million at December 31, 2025. Historically, the exchange rate between Japanese Yen and U.S. dollar, and the exchange rate between Indian rupees and U.S. dollar have been volatile. Additionally, the majority of our expenses are denominated in RMB. Due to China’s currency exchange control regulations, we are limited in our ability to convert and repatriate RMB, as well as in our ability to engage in foreign currency hedging activities in China. The balance of our cash and cash equivalents held in RMB was $2.3 million at December 31, 2025. We may manage foreign currency exposures using forward and option contracts to hedge and thus minimize exposure to the risk of the eventual net cash inflows and outflows resulting from foreign currency denominated transactions with customers, suppliers, and non-U.S. subsidiaries; however, we are not currently hedging any such transactions. As our foreign currency balances are not currently hedged, any significant revaluation of our foreign currency exposures may materially and adversely affect our business, results of operation and financial condition. We do not enter into foreign exchange forward or option contracts for trading purposes. 69