{"url_path":"/sec/mtekw/10-k/2026/item-5","section_key":"item-5","section_title":"Item 5 OPERATING AND FINANCIAL REVIEW AND PROSPECTS**","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":3991,"has_tables":true,"body_markdown":"** **\n\n**ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS**\n\n** **\n\n**MANAGEMENT’S DISCUSSION AND ANALYSIS OF\nFINANCIAL CONDITION AND RESULTS OF OPERATIONS**\n\n** **\n\n**A. Operating Results**\n\n* *\n\n*The following discussion\nand analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the\nrelated notes included elsewhere in this Annual Report. The discussion below contains forward-looking statements that are based upon our\ncurrent expectations and are subject to uncertainty and changes in circumstances. Actual results*may *differ materially from these\nexpectations due to inaccurate assumptions and known or unknown risks and uncertainties, including those identified in “Cautionary\nNote Regarding Forward-Looking Statements” and under “Risk Factors” elsewhere in this Annual Report. Our*discussion\n*and analysis for the year ended December 31, 2024 compared to the year ended December 31, 2023 can be found in our Annual Report on\nForm 20-F for the fiscal year ended December 31, 2024, filed with the SEC on March 28, 2025.* \n\n** **\n\n**Overview**\n\n \n\nWe are a B2B provider of intelligent\nvideo transmission technology with AI acceleration for edge platforms, using high-end digital video, audio and wireless communication\ntechnologies. We design, develop, manufacture and commercially sell miniature intelligent video and audio surveillance and communication\nsystems with AI acceleration, which are offered as products and solutions for the professional as well as the civilian and home security\nmarkets. Our products and solutions are sold as off the shelf, standalone and ready to use products, or as customized components that\nmeet our customers’ requirements and integrate into their systems and products. Our customers include companies operating in the\ndrone, robotic, defense, HLS, intelligence gathering, autonomous vehicle and space markets.\n\n** **\n\n**Comparison of the Year Ended December 31, 2025\nand 2024**\n\n** **\n\n**Results of Operations**\n\n \n\nThe following table summarizes\nour results of operations for the periods presented.\n\n \n\n  \nYear Ended\nDecember 31, \n\nU.S. dollars \n2025  \n2024 \n\nRevenues \n$1,341,218  \n$6,078,953 \n\nCost of revenues \n$1,704,967  \n$2,562,832 \n\nGross profit  (Loss) \n$(363,749) \n$3,516,121 \n\nResearch and development expenses, net \n$1,286,932  \n$927,048 \n\nSales and marketing \n$1,161,371  \n$923,439 \n\nGeneral and administrative \n$2,412,373  \n$3,014,378 \n\nLoss from Operations \n$5,224,425  \n$(1,348,744)\n\nFinancial Loss (income), net \n$184,897  \n$(114,852)\n\nNet Loss \n$(5,409,322) \n$(1,233,892)\n\n** **\n\n**Revenues**\n\n \n\nOur revenues for the year\nended December 31, 2025 were $1,341,218, representing a decrease of $4,737,735, or 78%, compared to $6,078,953 for the year ended December\n31, 2024. The decrease was primarily attributable to our strategic shift toward complete systems, which are characterized by longer and\nmore complex sales cycles than OEM products.\n\n** **\n\n**Cost of Revenues**\n\n \n\nOur cost of revenues for the\nyear ended December 31, 2025 was $1,704,967 representing a decrease of $857,865 or 33%, compared to $2,562,832 for the year ended December\n31, 2024. The decrease was primarily due to lower sales volumes, whereas fixed costs remained relatively stable.\n\n** **\n\n**Gross Profit (Loss)**\n\n \n\nOur gross loss for the\nyear ended December 31, 2025 was $363,749, compared to gross profit of $3,516,121 for the year ended December 31, 2024. The decrease\nwas primarily due to the decrease in revenues.** **\n\n** **\n\n41\n\n \n\n** **\n\n**Research and Development Expenses**\n\n \n\nOur net research and development\nexpenses for the year ended December 31, 2025 were $1,282,932, representing an increase of $355,884\nor 38%, compared to $927,048 for the year ended December 31, 2024. The increase was primarily due to costs related to the development\ncost of our new full systems.\n\n** **\n\n** **\n\n**Sales and Marketing Expenses**\n\n \n\nOur sales and marketing expenses\nwere $1,161,371 for the year ended December 31, 2025, representing an increase of $237,932 or 26%, compared to $923,439 for the year ended\nDecember 31, 2024. The increase was primarily attributable to expanded marketing headcount and participation in overseas exhibitions and\nconferences.\n\n** **\n\n**General and Administrative Expenses**\n\n \n\nOur general and administrative\nexpenses were $2,412,373 for the year ended December 31, 2025, a decrease of $602,005 or 20%, compared to $3,014,378 for the year ended\nDecember 31, 2024. The decrease was primarily attributable to reduced personnel costs and a decrease in the allowance for doubtful accounts.\n\n** **\n\n**Operating Loss**\n\n \n\nAs a result of the foregoing,\nour operating loss for the year ended December 31, 2025 was $5,224,425, compared to an operating loss of $1,348,744 for the period ended\nDecember 31, 2024, an increase of $3,875,681.** **\n\n** **\n\n**Financial Expenses, net**\n\n \n\nFinancial expense, net,\nconsists of bank fees, interest on deposits and other transactional costs, exchange rate differences and the remeasurement of\nconvertible promissory notes and remeasurement of investments.\n\n \n\nWe recognized net financial\nloss of $184,897 for the year ended December 31, 2025, compared to net financial income of $114,852 for the year ended December 31, 2024,\na decrease of $299,749. The decrease was primarily attributable to bank credit costs and foreign exchange fluctuations.\n\n** **\n\n**Net Loss**\n\n \n\nAs a result of the foregoing,\nour net loss for the year ended December 31, 2025 was $5,409,322, compared to $1,233,892 for the year ended December 31, 2024, an increase\nof $4,175,430 or 338%.\n\n** **\n\n**B. Liquidity and Capital Resources**\n\n** **\n\n**Overview**\n\n \n\nSince our inception we have\nfunded our operations principally from bank loans and line of credit, issuance of Ordinary Shares, preferred shares and warrants to purchase\nOrdinary Shares and preferred shares and from long-term loans from shareholders. We have incurred losses and generated negative cash flows\nfrom operations since our inception.\n\n \n\nAs of December 31, 2025, we\nhad $2,593,094 in cash and cash equivalents and restricted deposits.\n\n \n\nThe table below summarizes\nour cash flows for the periods indicated.\n\n \n\n  \nFor the Year Ended\nDecember 31, \n\nU.S. dollars \n2025  \n2024 \n\nNet cash used in operating activities \n$(3,408,749) \n$(2,219,583)\n\nNet cash provided by (used in) investing activities \n (22,700) \n 2,961,065 \n\nNet cash  provided by (used in) financing activities \n 3,689,311  \n (489,436)\n\nNet increase in cash and cash equivalents \n$257,862  \n$252,046 \n\n \n\n42\n\n \n\n \n\nWe have experienced net losses\nand negative cash flows from operations since our inception and have relied on our ability to fund our operations primarily through proceeds\nfrom sales of Ordinary Shares, Bank Loans, Line of credit and long-term loans from shareholders.\n\n \n\nAs of December 31, 2025 and 2024, we had working capital of $2,276,976\nand $5,470,525, respectively; an accumulated deficit of $17,545,337 and $12,136,015, respectively; and negative cash flow from operating\nactivity of $3,408,749 and $2,219,583, respectively. We anticipate that such losses will continue until our new products reach commercial\nprofitability. If we are unable to successfully commercialize our product candidates and reach profitability or obtain sufficient future\nfinancing through debt or issuance of equity, we will be required to delay some of our planned research and development programs.\n\n \n\nOur backlog as of January 1, 2026, was approximately $2.5 million.\nAs of May 14, 2026, our backlog was approximately $3.1 million, part of which is expected to be delivered and recognized as revenues by\nthe end of 2026, and the remainder during 2027. During 2023 and 2024, two customers submitted purchase orders for the Company’s\nproducts and services. However, as of the date of this Annual Report, these customers have not initiated the delivery or acceptance of\nthe related goods and services. Accordingly, management determined that these purchase orders do not meet the criteria for inclusion in\nthe Company’s reported backlog and therefore excluded them from the backlog disclosure. We define backlog as the accumulation of\nall pending orders with a later fulfillment date for which revenue has not been recognized and we consider valid. The backlog consists\nof executed purchase orders from new customers and existing customers with which we have had long-standing relationships and from governmental\nagencies. In addition, because revenue will not be recognized until we have fulfilled our obligations to a customer, there may be a significant\namount of time between executing an agreement or purchase order with a customer and delivery of the product to the customer and revenue\nrecognition. In addition, backlog is not necessarily indicative of future earnings (see “Item 3.D. Risk Factors - Risks Related\nto Our Business, Industry, Operations and Financial Condition - Amounts included in backlog may not result in actual revenue and are an\nuncertain indicator of our future earnings” for further information).\n\n \n\nIn addition, on March 24,\n2021, we entered into a share purchase agreement, which was amended and restated on April 27, 2021 and August 4, 2021, as amended\nand restated, the March 2021 SPA, pursuant to which we issued an aggregate of 489,812 preferred shares, to certain investors in a private\nplacement, or the March 2021 Private Placement, for aggregate gross proceeds of $1.5 million. These preferred shares were converted into\nan equal number of Ordinary Shares in connection with the closing of the IPO. The March 2021 investors also received warrants to purchase\nup to an aggregate of 489,812 Ordinary Shares. Such warrants were exercisable until March 24, 2026, at an exercise price of\n$6.1248 per Ordinary Share and expired unexercised on such date.\n\n \n\nOn November 25, 2025, we entered into Note Purchase Agreements, or\nthe Note Purchase Agreements, with two institutional investors, pursuant to which we issued convertible promissory notes, or the Convertible\nPromissory Notes, in an aggregate principal amount of $2.0 million. The Convertible Promissory Notes do not bear interest and are not\nrepayable in cash, and our obligations thereunder are to be satisfied solely through the issuance of Ordinary Shares upon conversion in\naccordance with their terms. Of the aggregate principal amount, $1.0 million became convertible beginning six months after issuance, while\nthe remaining $1.0 million became convertible beginning twelve months after issuance. The conversion price is equal to 70% of the lowest\ndaily volume-weighted average price of our Ordinary Shares during the five consecutive trading days immediately preceding the applicable\nconversion date, subject to a floor price equal to 20% of the closing trading price of the Ordinary\nShares on the Nasdaq Capital Market on the issuance date. Any outstanding principal amount remaining twenty-four months after issuance\nwill automatically convert into Ordinary Shares in accordance with the then-applicable conversion terms, subject to applicable beneficial\nownership limitations and any required shareholder approval under Israeli law, or Shareholder Approval.\n\n \n\nThe Convertible Promissory\nNotes contain customary conversion limitations, including a beneficial ownership cap and restrictions on issuances that would require\nShareholder Approval.\n\n \n\n43\n\n \n\n \n\nOn January 26, 2026, we entered\ninto Amendment No. 1 to the Note Purchase Agreements with each investor and amended the Convertible Promissory Notes, collectively, the\nAmendments. Among other things, the Amendments reduced the applicable beneficial ownership limitation from 9.99% to 4.99%, provided that\npre-funded warrants, or the Pre-Funded Warrants, may be issued in lieu of Ordinary Shares to the extent a conversion would exceed such\nlimitation, and revised the mandatory conversion provisions accordingly. The Pre-Funded Warrants are exercisable until exercised in full\nand are subject to substantially the same beneficial ownership limitations applicable to conversions of the Convertible Promissory Notes.\n\n \n\nOn March 6, 2026, we issued\n882,825 Ordinary Shares and Pre-Funded Warrants to purchase up to 722,311 Ordinary Shares in a registered direct offering for gross proceeds\nof approximately $2.0 million before deducting offering expenses. We intend to use the net proceeds for working capital and general corporate\npurposes.\n\n \n\nOn March 30, 2026, we entered\ninto a Sales Agreement, or the Sales Agreement, with A.G.P./Alliance Global Partners, or the Sales Agent, pursuant to which we may offer\nand sell, from time to time, through the Sales Agent, up to $3,007,329 of Ordinary Shares by any method permitted by law deemed to be\nan “at the market offering” under Rule 415(a)(4) of the Securities Act, subject to our instructions regarding price, time\nand size limitations and subject to the terms and conditions of the Sales Agreement. The Ordinary Shares will be offered and sold pursuant\nto our effective Registration Statement of Form F-3, or the Registration Statement, and the related base prospectus included in the Registration\nStatement, as supplemented by the prospectus supplement to the Registration Statement dated March 30, 2026.\n\n \n\nWe have agreed to pay the\nSales Agent a cash commission equal to 3.0% of the gross proceeds from any ordinary shares sold under the Sales Agreement and to reimburse\nthe Sales Agent for certain specified expenses. We also agreed to provide customary indemnification and contribution rights. The Sales\nAgreement contains customary representations, warranties and closing conditions. We intend to use any net proceeds from sales under the\nSales Agreement for working capital and general corporate purposes.\n\n \n\nAs of May 14, 2026, we had not sold any Ordinary Shares under the Sales\nAgreement.\n\n \n\nAs of December 31, 2025 and 2024, we had $2,593,094 and $2,335,232\nin cash and cash equivalents and restricted deposits, respectively. We expect that our existing cash and cash equivalents as of December\n31, 2025, together with anticipated revenue from existing customers pursuant to existing purchase orders, as well as projected revenue\nfrom new customers, will be sufficient to fund our current operations and satisfy our obligations for the next twelve months. Accordingly,\nthe accompanying financial statements have been prepared on a going concern basis in accordance with U.S. GAAP. While certain conditions\nand events raised substantial doubt regarding our ability to continue as a going concern, management has implemented plans intended to\nmitigate those conditions and concluded that such plans alleviate the substantial doubt for at least twelve months from the date of issuance\nof the financial statements. Our operating plans may change as a result of many factors that may currently be unknown to us, and we may\nneed to seek additional funds sooner than planned. Our future capital requirements will depend on many factors, including:\n\n \n\n \n●\nthe progress and costs of our research and development activities;\n\n \n\n \n●\nthe costs of manufacturing our products;\n\n \n\n \n●\nthe costs of filing, prosecuting, enforcing and defending patent claims and other intellectual property rights;\n\n \n\n \n●\nthe potential costs of contracting with third parties to provide marketing and distribution services for us or for building such capacities internally; and\n\n \n\n \n●\nthe magnitude of our general and administrative expenses.\n\n** **\n\n**Operating Activities**\n\n \n\nCash used in operating activities\nmainly consists of our net loss adjusted for certain non-cash items, including share-based compensation, depreciation\nexpenses and changes in operating assets and liabilities during each period.\n\n \n\nNet cash used in operating\nactivities was $3,408,749 for the year ended December 31, 2025, compared to net cash used in operating activities of $2,219,583 for the\nyear ended December 31, 2024. Net cash used in operating activities was primarily attributable to an increase in net loss for the year\nended December 31, 2025 of $5,409,322 (compared to $1,233,892 for the year ended December 31, 2024), partially offset by a decrease of\n$2,905,752 in trade receivables.\n\n \n\n44\n\n \n\n** **\n\n**Investing Activities**\n\n \n\nNet cash used in investing\nactivities was $22,700 for the year ended December 31, 2025, as compared to net cash provided by investing activities of $2,961,065 for\nthe year ended December 31, 2024. The decrease is mainly attributable to the absence of bank deposit maturities in 2025, compared to 2024.\n\n** **\n\n**Financing Activities**\n\n \n\nNet cash provided by financing activities was $3,689,311 for the year\nended December 31, 2025 due to an increase in short term bank credit and issuance of convertible\npromissory notes, compared to net cash used in financing activities of $489,436 for the year ended December 31, 2024, which were\nmainly attributable to repayment of shareholder loans.\n\n** **\n\n**Financial Arrangements**\n\n \n\nSince our inception, we have\nfinanced our operations primarily through proceeds from sales of Ordinary Shares, preferred shares, warrants, credit lines, convertible\nnotes and long-term loans from banks and shareholders.\n\n \n\nDuring the years ended December\n31, 2025 and December 31, 2024, we did not receive any long term loans from banks.\n\n \n\nSince our inception, Israel Bar, our Chief Executive Officer, a director\nand our largest shareholder, and Joseph Gottlieb, our former director, have provided loans to us in an aggregate amount of NIS 7,513,887\n(approximately $2,355,137), or the Shareholders Loan. Following Mr. Gottlieb’s passing, his rights under the Shareholders Loan were\ntransferred to his estate in accordance with applicable law. On May 9, 2021, we entered into a loan facility agreement, or the Loan Facility\nAgreement, effective as of January 1, 2021, with Mr. Bar and Mr. Gottlieb.\n\n \n\nOn March 2, 2023, we entered into an amendment, or the Amendment, to\nthe Loan Facility Agreement, pursuant to which we (i) amended the repayment terms set in the Loan Facility Agreement to provide that the\namounts outstanding under the Loan Facility Agreement shall be due and payable in 24 equal monthly payments, commencing on February 4,\n2024, subject to our availability of free cash (as defined in the Amendment) and (ii) clarified the total amount due to Mr. Gottlieb under\nthe Loan Agreement is NIS 1,020,347 (approximately $319,858). The total outstanding amount under the Loan Facility Agreement after giving\neffect to the Amendment was $1,088,250. The Amendment was accounted for as a modification with no change to the book value of the Shareholders\nLoans. Following Mr. Gottlieb’s passing, his rights under the Shareholders Loans were transferred to his estate in accordance with\napplicable law. As of December 31, 2025 and 2024, the outstanding amount under the Loan Facility Agreement was $258,837 and $589,467,\nrespectively.\n\n \n\nOn March 26, 2025, we entered\ninto a $4 million credit line agreement, or the Credit Facility, with United Mizrahi-Tefahot Bank Ltd., or the Bank, on accepted commercial\nterms for similarly-sized companies. Loans from the credit line will have a maturity date of up to three months. For loans with a maturity\ndate exceeding one month (up to three months), the interest will be paid on a monthly basis. For loans with a shorter maturity date, the\ninterest will be paid on the maturity date. The Credit Facility will be in force for a period of 12 months from the date of the agreement.\nSubsequent to year-end, the Credit Facility was renewed for an additional one-year term on substantially similar terms. The Credit Facility\nis secured by all of our assets. In addition, the Credit Facility includes certain customary information rights in favor of the Bank,\nrestrictive covenants of the Company and of Maris U.S., and the agreement by two of our shareholders to certain subordination restrictions\nwith respect to loans they have provided to us. As of December 31, 2025, we drew $2,000,000 from the line of credit and were in compliance\nwith all restrictive covenants. For the year ended December 31, 2025, we recorded financial expenses of $148,628 related to the Credit\nFacility.\n\n \n\n**Off-Balance Sheet Arrangements**\n\n \n\nWe have entered into several\nresearch and development programs, pursuant to which we received grants from the IIA and are therefore in some cases obligated to pay\nroyalties to the IIA at a rate of 3% to 5% on sales proceeds from products that were developed under IIA programs up to the total amount\nof grants received , linked to the U.S. dollar and bearing interest at the annual SOFR applicable to U.S. dollar deposits. With respect\nto IIA grants approved by the IIA prior to January 1, 2024, but which are outstanding thereafter, the annual interest rate shall be the\nhigher of (i) the twelve months SOFR plus 1%, or (ii) a fixed annual interest rate of 4%. We may be required to pay additional royalties\nupon the occurrence of certain events as determined by the IIA, that are within our control.\n\n \n\nThe total amount of grants received as of December 31, 2025, which\nwe are obligated to pay royalties as described above, was approximately $655,000 (including accumulated interest). During the year 2012,\nwe paid the IIA royalties in the amount of approximately $7,301 in connection with a single sale for pilot purposes. Since 2013, we did\nnot utilize the intellectual property that was developed using the governmental grant in any of our products.\n\n \n\n45\n\n \n\n \n\nIn August 2022, we received approval for a joint grant with Ben Gurion\nUniversity, Be’er Sheva, Israel, from the IIA for the joint development of AI and machine learning based system for detecting, diagnosing\nand predicting faults and malfunction in drones. This grant is not subject to royalty payments to the IIA. The total approved budget we\nreceived for the first year of the joint project amounts to NIS 1,314,024 (approximately $411,919). The grant represents 66% of the total\nbudget for the project (approximately $271,867). As of December 31, 2025, we had received NIS 806,232 (approximately $252,737) from the\nIIA with respect to this program.\n\n \n\nIn June 2023, we received grant approval from the IIA in the amount\nof NIS 1,209,797 (approximately $379,246) to support the first-year development of an innovative system for onboard situation awareness\nfor nanosatellite platforms. The grant represents 50% of the total budget for the first year of the project. As of December 31, 2025,\nwe had received NIS 1,196,763 (approximately $375,160 from the IIA with respect to this program.\n\n \n\nIn November 2023, we received grant approval for the second year of\nthe joint project with Ben Gurion University, Be’er Sheva, Israel, from the IIA. The total approved budget we received for the second\nyear of the joint project amounts to NIS 935,544 (approximately $293,274). The grant represents 66% of the total budget for the project\n(approximately $169,306). As of December 31, 2025, we had received NIS 617,459 (approximately $193,561) from the IIA with respect to this\nprogram.\n\n \n\nTotal research and development income recorded in the statements of\noperations) for the year ended December 31, 2025 was $56,758.\n\n \n\nWe do not believe that off-balance\nsheet arrangements and commitments are reasonably likely to have a current or future effect on our financial condition, changes in financial\ncondition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.\n\n** **\n\n**C. Research and development, patents and licenses, etc.**\n\n \n\nFor a description of our research\nand development programs and the amounts that we have incurred over the last two years pursuant to those programs, please see “Item\n5.A. Operating Results- Operating Expenses- Research and Development Expenses, net” and “Item 5.A. Results of Operations-\nComparison of the year ended December 31, 2025, to the year ended December 31, 2024- Research and Development Expenses, net.”\n\n** **\n\n**D. Trend information**\n\n \n\nThe trends impacting us are\ndescribed elsewhere in this Annual Report, including in “Item 3.D. Risk Factors”, “Item 4.B. Business Overview”,\n“Item 5.A. Operating Results”, “Item 5.B. Liquidity and Capital Resources”, and Item 10.C. Material Contracts”.\n\n** **\n\n**E. Critical Accounting Estimates**\n\n \n\nWe describe our significant\naccounting policies more fully in Note 2 to our financial statements included elsewhere in this Annual Report. We believe that the accounting\npolicies described below and in Note 2 to our financial statements are critical in order to fully understand and evaluate our financial\ncondition and results of operations.\n\n \n\nWe prepare our financial statements\nin accordance with U.S. GAAP. At the time of the preparation of the financial statements, our management is required to use estimates,\nevaluations, and assumptions which affect the application of the accounting policy and the amounts reported for assets, obligations, income,\nand expenses. Any estimates and assumptions are continually reviewed. The changes to the accounting estimates are credited during the\nperiod in which the change to the estimate is made.\n\n** **\n\n**Revenue Recognition**\n\n \n\nWe determine the appropriate\nrevenue recognition for our contracts with customers by analyzing the type, terms and conditions of each contract. We classify the revenue\ncomponents as products according to the attributes of the underlying components.\n\n \n\nOur contract payment terms\ntypically range between 30 and 150 days. We assess collectability based on several factors, including collection history.\n\n** **\n\n46\n\n \n\n** **\n\n**Inventory Provision**\n\n \n\nInventory write-offs are provided\nto cover risks arising from slow moving items or technological obsolescence. Reserves for potentially excess and obsolete inventory are\nmade based on management’s analysis of inventory levels, future sales forecasts. Once established, the original cost of our inventory\nless the related inventory reserve represents the new cost basis of such products.\n\n** **\n\n**Use of estimates in the preparation of financial\nstatements**\n\n \n\nThe preparation of financial\nstatements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the\nfinancial statements and accompanying notes. Our management believes that the estimates, judgment and assumptions used are reasonable\nbased upon information available at the time they are made. These estimates, judgment and assumptions can affect reported amounts and\ndisclosure made. Actual results could differ from those estimates."}