{"url_path":"/sec/turb/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/1963439/0001213900-26-057672-index.html","accession_number":"0001213900-26-057672","cik":"0001963439","ticker":"TURB","issuer_name":"Turbo Energy, S.A.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1963439/0001213900-26-057672-index.html","primary_entity_key":"0001963439","primary_entity_name":"Turbo Energy, S.A."},"word_count":299,"has_tables":true,"body_markdown":"**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n \n\n**Foreign Currency Exchange Risk**\n\n \n\nOur Company is exposed to\nforeign currency risk primarily through service income or expenses that are denominated in a currency other than the functional currency\nof the operations to which they relate. The currencies giving rise to this risk are primarily US dollars.\n\n \n\n**Interest Rate Risk**\n\n \n\nInterest rate risk is the\nrisk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The\nCompany is exposed to interest rate risk on its lines of credit due to fluctuations in interest rates. The Company’s bank loans\nand leases have fixed rates of interest resulting in limited interest rate fair value risk for the Company. The Company manages interest\nrate risk by seeking financing terms in individual arrangements that are most advantageous taking into account all relevant factors, including\ncredit margin, term and basis. The risk management objective is to minimize the potential for changes in interest rates to cause adverse\nchanges in cash flows to the Company.\n\n \n\n*Inflation*\n\n \n\nWe do not believe the impact\nof inflation on our Company is material. Our operations are in Spain and Spain’s inflation rates have been relatively stable in\nthe last two years: 2.8% for 2024 and 3.5% for 2022.\n\n \n\nRecent inflationary pressures\nhave not had a significant impact on our operations. While inflation is recognized as a potential risk, the Company does not believe that\nthe impact of inflation on their operations is material. It is possible, however, that future inflationary pressures could have a greater\nimpact on our operations, and we will monitor this risk closely.\n\n \n\n*Supply chain*\n\n \n\nA possible geopolitical conflict\nwith China, significant price increases or shortages of equipment and components may represent potential market risks."}