The principal market risks to which we are exposed as a result of our operations are foreign exchange rate risks and interest rate risks. Foreign exchange rate risk Although we report our consolidated financial statements in dollars, in, 2023, 2024 and 2025, a portion of our revenues and direct expenses was derived in other currencies. For fiscal years 2023, 2024 and 2025, we derived approximately 25.3%, 23.1% and 22.4% of our revenues in dollars and other currencies, 48.2%, 52.1% and 54.6% in NIS, 26.5%, 24.8% and 22.9% in Brazilian Reals. In fiscal years, 2023 ,2024 and 2025, 27.0%, 25.1% and 23.5 % of our expenses were incurred in dollars and other currencies, 51.2%, 55% and 56.5% in NIS and, 21.8%, 19.9% and 20.0% in Brazilian Reals. Exchange differences upon conversion from our functional currency to dollars (presentation currency) are accumulated as a separate component of accumulated other comprehensive income (loss) under stockholders’ equity. In the year 2023 a profit of $ 0.8 million, in the year 2024 a loss of $ 12.3 million and in year a profit of $18.3 million 2025. 62 . The fluctuation of the other currencies in which we incur our expenses or generate revenues against the dollar has had the effect of increasing or decreasing (as applicable) reported revenues, cost of revenues and operating expenses in such foreign currencies when converted into dollars from period to period. The following table illustrates the effect of the changes in exchange rates on our revenues, gross profit and operating income for the periods indicated (Year ended December 31, all in $ Thousands): 2023 2024 2025 Actual At 2022 exchange rates (1) Actual At 2023 exchange rates (1) Actual At 2024 exchange rates Revenues 319,978 329,420 336,257 344,146 359,023 350,084 Gross profit 153,161 158,291 160,620 163,895 178,577 173,866 Operating income 65,955 67,422 71,169 73,518 77,028 75,567 (1) Based on average exchange rates during the period. Those columns are Non GAAP information. Our policy remains to reduce exposure to exchange rate fluctuations by entering into foreign currency forward transactions that mainly qualify as hedging transactions under ASC Topic 815, “Derivatives and Hedging” the results of which are reflected in our income statements as revenues or cost of revenues. Currently, the item most likely to be affected by the foreign currency risk is our inventory purchase price. Therefore, from time to time, we enter into such forward contracts, generally of 3 to 20 months’ duration in order to hedge a portion of our foreign currency risk on the inventory purchase price. The result of these transactions, which are affected by fluctuations in exchange rates, could cause our cost of revenues, gross profit and operating income to fluctuate. Interest rate risk We invest our cash balances in each country in local currency in bank deposits and therefore, we are exposed to interest rate fluctuation in those currencies, but we do not believe such risks to be material. We do not use derivative financial instruments to limit exposure to interest rate risk.