Company: RSKD
Filing Date: 2025-03-06
Form Type: 20-F
Source: 0001851112-25-000006
Chunk: 105

Company: RISKIFIED LTD.
Filing Date: 2025-03-06
Form: 20-F
Item: Item 5
Chunk 105
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               % Change  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                 (dollars in thousands)                                                                        
  Provision for (benefit from) income taxes      $                            6,419      $         5,798      $             621      11        

Provision for income taxes increased by $0.6 million, or 11%. We maintain a full valuation allowance on our Israeli and U. S. deferred tax assets resulting from carryforward tax losses, capitalized research and development expenses, and other reserves and allowances. The provision for income taxes increased primarily as a result of uncertain tax positions and change in valuation allowance. Our effective tax rate was (22.52)% and (10.89)% of our net profit (loss) before income taxes for the years ended December 31, 2024 and 2023, respectively. Our effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as non-deductible share-based compensation, prior period adjustments, uncertain tax positions, and changes in our valuation allowance.

Impact of Foreign Currency Fluctuation

See Item 3D. “ Risk Factors - We are exposed to fluctuations in currency exchange rates, which could negatively affect our operating results. ” and Item 11. “Quantitative and Qualitative Disclosures About Market Risk-Foreign Currency Exchange Risk.”

B. Liquidity and Capital Resources

Since our inception, we have financed our operations primarily through the issuance of ordinary and preferred shares, warrants, and cash flows from operations.

Our principal uses of cash have been related to investments in bank deposits, money market funds, and marketable debt securities, funding our operations, capital expenditures, and share repurchases. As of December 31, 2024, our principal sources of liquidity were cash, cash equivalents, and bank deposits of $376.1 million which were held for working capital purposes. Cash and cash equivalents consist of cash in banks, bank deposits, and money market funds. Short-term deposits consist of bank deposits with original maturities between 4 and 12 months and that mature within 12 months of the balance sheet date. In 2024, we earned $20.2 million of interest income from our bank deposits, money market funds, and marketable debt securities. We expect to continue to utilize bank deposits, money market funds, and other similar investment vehicles to generate returns on our capital in the future,