{"url_path":"/sec/adsew/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1879248/0001213900-26-057891-index.html","accession_number":"0001213900-26-057891","cik":"0001879248","ticker":"ADSE","issuer_name":"Ads-Tec Energy Public Ltd Co","edgar_url":"https://www.sec.gov/Archives/edgar/data/1879248/0001213900-26-057891-index.html","primary_entity_key":"0001879248","primary_entity_name":"Ads-Tec Energy Public Ltd Co"},"word_count":407,"has_tables":true,"body_markdown":"** **\n\n**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n** **\n\n**Market Risk**\n\n \n\nMarket risk is the risk that\nchanges in market prices - e.g. foreign exchange rates, interest rates and equity prices - will affect ADSE’s income or the value\nof its holdings of financial instruments. The financial instruments affected by market risk essentially comprise financial liabilities\nand assets.\n\n** **\n\n**Interest Rate Risk**\n\n \n\nAt December 31, 2025, we did\nnot have any significant exposure to interest rate risk as the remaining term of shareholder loans is less than six months and interest\nrates are fixed and we only have insignificant interest income from cash and cash equivalents and other investments.\n\n** **\n\n**Currency Risk**\n\n \n\nAt December 31, 2025, ADSE\nis exposed to currency risks arising from bank balances in foreign currencies, transactions in foreign currencies, including shareholder\nloans and intercompany financing in currencies other than the borrower’s or lender’s functional currency, revenue generated\nor purchases for materials and services, and operating business activities in the US for ADSE US. The main exposure of currency risks\narises with respect to intercompany receivables from ADSE US amounting to EUR 22.0 million (December 31, 2024: net intercompany payables\nto ADSE US amounting to EUR 2.3 million), bank balances amounting to EUR 1.2 million (December 31, 2024: EUR 1.8 million), trade payables\namounting to EUR 2.3 million (31. December 2024: EUR 1.0 million) all of which are denominated in USD and one tranche of the shareholder\nloans amounting to EUR 2.3 million (December 31, 2024: EUR 1.1 million) issued to ADSE GM. Lesser currency risks arise from normal operations\nsince 92% of revenues in 2025 (2024: 95%, 2023: 95%) are generated in EUR.\n\n** **\n\n**Equity risk**\n\n* *\n\nEquity risk is the risk that\nchanges in stock markets - e.g. a falling price of Ordinary Shares and/or Listed Warrants (“ADSE’s trading price”),\nreceiving no dividends, receiving lower dividends than expected, or fluctuations in the equity markets - will affect the value of ADSE’s\nOrdinary Shares and outstanding warrants. The volatility of ADSE’s trading price could potentially have significant impact on the\nvaluation of warrant liabilities in the future and valuation of future share-based payments. As of December 31, 2025, equity risks arise\nwith respect to warrant liabilities amounting to EUR 54.8 million.\n\n \n\n**Other Market Risks**\n\n \n\nADSE is not significantly\nexposed to other market risks.\n\n \n\nSee also ADSE´s audited\nfinancial statement for years ended December 31, 2025 and 2024, respectively, included elsewhere in this annual report for more information."}