{"url_path":"/sec/rdcm/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":"2026-03-31","source_url":"https://www.sec.gov/Archives/edgar/data/1016838/0001213900-26-036862-index.html","accession_number":"0001213900-26-036862","cik":"0001016838","ticker":"RDCM","issuer_name":"RADCOM LTD","edgar_url":"https://www.sec.gov/Archives/edgar/data/1016838/0001213900-26-036862-index.html","primary_entity_key":"0001016838","primary_entity_name":"RADCOM LTD"},"word_count":371,"has_tables":true,"body_markdown":"**ITEM\n11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n \n\nWe\nare exposed to a variety of risks, including changes in interest rates affecting primarily the interest received on short-term deposits\nand foreign currency fluctuations. We may in the future undertake hedging or other similar transactions or invest in market, risk-sensitive\ninstruments if our management determines that it is necessary to offset these risks.\n\n \n\n**Interest\nRate Risk**\n\n \n\nOur\nexposure to market risks regarding changes in interest rates relates primarily to our bank deposits and to loans we may take that are\nbased on a floating/fixed interest rate. Our bank deposits are held mainly in U.S. dollars with financial banks and bear annual average\ninterest range of approximately 4.12%-6.5%. For the purposes of specific risk analysis, we use a sensitivity analysis to determine the\nimpact that market risk exposure may have on the financial income derived from our bank deposits. The potential loss to us over one year\nwould result from a hypothetical change in our annual average range interest rates of 10% is not material.\n\n \n\n**Foreign\nCurrency Exchange Risk**\n\n \n\nOur\nfinancial results may be impacted by foreign currency fluctuations. Our foreign operations are generally transacted through our U.S.\nand Brazil subsidiaries and through our representatives and distributors. Typically, these sales and related expenses are denominated\nin U.S. dollars, BRLs or in euros for European countries, while a significant portion of our expenses are denominated in NIS. Because\nour financial results are reported in U.S. dollars, our results of operations may be impacted by fluctuations in the rates of exchange\nbetween the U.S. dollar and other currencies, mainly the NIS and BRL. Based on our budget for 2026, we expect that (i) a change of ten\npercent (10%) in the exchange rate of the NIS to U.S. dollar will have an impact on our operating expenses expressed in dollar terms\nby approximately $2.3 million per year and vice versa and (ii) a change of ten percent (10%) in the exchange rate of the BRL to U.S.\ndollar will have an impact on our operating expenses expressed in dollar terms by approximately $130,000 per year and vice versa.\n\n \n\nSee\nalso “Item 5.A—Operating and Financial Review and Prospects—Operating Results—Impact of Inflation and Foreign\nCurrency Fluctuations.”"}