{"url_path":"/sec/mtekw/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/1872964/0001213900-26-057766-index.html","accession_number":"0001213900-26-057766","cik":"0001872964","ticker":"MTEK","issuer_name":"Maris Tech Ltd.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1872964/0001213900-26-057766-index.html","primary_entity_key":"0001872964","primary_entity_name":"Maris Tech Ltd."},"word_count":562,"has_tables":true,"body_markdown":"** **\n\n**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**\n\n \n\nIn the ordinary course of\nour operations, we are exposed to certain market risks, primarily changes in foreign currency exchange rates and interest rates.\n\n** **\n\n**Quantitative and Qualitative Disclosure About\nMarket Risk**\n\n \n\nWe are exposed to market risks\nin the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse\nchanges in financial market prices and rates. Our current investment policy is to invest available cash in bank deposits with banks that\nhave a credit rating of at least A-minus. Accordingly, some of our cash and cash equivalents is held in deposits that bear interest. Given\nthe current low rates of interest we receive, we will not be adversely affected if such rates are reduced. Our market risk exposure is\nprimarily a result of U.S. dollar/NIS exchange rates, which is discussed in detail in the following paragraph.\n\n** **\n\n83\n\n \n\n** **\n\n**Foreign Currency Exchange Risk**\n\n \n\nOur functional and reporting\ncurrency is the U.S. dollar. Although the U.S. dollar is our functional currency, the majority of our expenses are denominated in NIS,\nand currently most of our revenues are denominated in U.S. dollars. Our foreign currency exposures give rise to market risk associated\nwith exchange rate movements of the U.S. dollar against the NIS. Our NIS expenses consist principally of payroll to our employees in Israel,\npayments made to subcontractors for purchasing components to our products, research and development activities and marketing and sales\nactivities. We anticipate that a significant portion of our expenses will continue to be denominated in NIS. If the U.S. dollar fluctuates\nsignificantly against the NIS, it may have a negative impact on our results of operations. To date, fluctuations in the exchange rates\nhave not materially affected our results of operations or financial condition.\n\n \n\nDue to the fact that exchange\nrates between the U.S. dollar and the NIS fluctuate continuously, such fluctuations have an impact on our results and period-to-period\ncomparisons of our results. The effects of foreign currency remeasurements are reported in our statements of operations. These measures,\nhowever, may not adequately protect us from the material adverse effects of such fluctuations.\n\n \n\nCurrently, we do not hedge\nour foreign currency exchange risk. In the future, we may enter into formal currency hedging transactions to decrease the risk of financial\nexposure from fluctuations in the exchange rates of our principal operating currencies. These measures, however, may not adequately protect\nus from the material adverse effects of such fluctuations.\n\n** **\n\n**Impact of Inflation and Currency Fluctuations**\n\n \n\nOur functional and reporting\ncurrency is the U.S. dollar. We incur some of our expenses in other currencies. As a result, we are exposed to the risk that the rate\nof inflation in countries in which we are active other than the United States will exceed the rate of devaluation of such countries’\ncurrencies in relation to the dollar or that the timing of any such devaluation will lag behind inflation in such countries. To date,\nwe have been affected by the exchange rates of other countries’ currencies compared to the dollar, and we cannot assure you that\nwe will not be adversely affected in the future.\n\n \n\nThe annual rate of inflation\nin Israel was 2.7% in 2025 and 3.2% in 2024. The NIS revaluated against the U.S. dollar by approximately (12.5)% in 2025 and 0.6% in 2024."}