Quantitative and Qualitative Disclosures About Market Risk Market Risk Market risk represents the risk of loss that may impact the consolidated financial position, results of operations or cash flows of the Company. The Company is exposed to market risk in the area of foreign exchange rates, as described below. The Company does not utilize financial instruments for trading purposes and holds no derivative financial instruments that could expose it to significant market risk. Impact of Currency Fluctuation Because our results are reported in U.S. Dollars, changes in the rate of exchange between the Dollar and local currencies in those countries in which we operate (primarily NIS and Euro) will affect the results of our operations. The dollar cost of our operations in countries other than the U.S., is negatively influenced by revaluation of the U.S. dollar against other currencies. During 2025, the value of the U.S. dollar devaluated against the NIS by approximately 12.5% and revaluated against the Euro by approximately 11.3%. As of December 31, 2025, the majority of our net monetary assets were denominated in dollars and the remainder was denominated mainly in NIS and Euro. Net monetary assets that are not denominated in dollars or dollar-linked NIS were affected by the currency fluctuations in 2025 and are expected to continue to be affected by such currency fluctuations in 2026. As of December 31, 2025 the Company recorded a NIS and Israel CPI linked lease liability, under the implementation of ASC 842 in the amount of $39 million (including exchange rate differences of $2.9 million). In 2025, we entered into currency-forward transactions and currency-put options (NIS/dollar) of approximately $123 million with settlement dates through 2025-2026, designed to reduce cash-flow exposure to the impact of exchange-rate fluctuations on firm commitments of approximately $123 million. In accordance with ASC 815-10, we recorded in 2025 a decrease of approximately $3 million in fair market value in "Other Comprehensive Income". Short-term exposures to changing foreign exchange rates are primarily due to operating cash flows denominated in foreign currencies and transactions denominated in non-functional currencies. Our most significant foreign currency exposures are related to our operations in Israel. We have used foreign exchange forward contracts to partially cover known and anticipated exposures. We estimate that an instantaneous 10% depreciation in NIS from its level against the dollar as of December 31, 2025, with all other variables held constant, would decrease the fair value of our net liabilities denominated in NIS, held at December 31, 2025, by approximately $16.1 million.