Company: RSKD
Filing Date: 2025-03-06
Form Type: 20-F
Source: 0001851112-25-000006
Chunk: 200

Company: RISKIFIED LTD.
Filing Date: 2025-03-06
Form: 20-F
Item: Item 19
Chunk 200
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 Foreign currency transactions resulted in net losses of $ 0.5 1.4 2.5

For subsidiaries where the functional currency is not the U. S. dollar, we use the period-end exchange rates to translate assets and liabilities, the average monthly exchange rates to translate revenue and expenses, and historical exchange rates to translate shareholders’ equity, into U. S. dollars. We record translation gains and losses in accumulated other comprehensive profit (loss) as a component of shareholders’ equity in the consolidated balance sheets.

Concentration of Risks

Our financial instruments that are exposed to concentrations of credit risk primarily consist of cash and cash equivalents, short-term deposits, short-term investments, accounts receivable and derivative financial instruments. We maintain our cash, cash equivalents, short-term deposits, and short-term investments with high-quality financial institutions mainly in the United States and Israel, the composition of which are regularly monitored by us. We have not experienced any material losses in such accounts. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We seek to mitigate such risk by limiting our counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis.

Our customers are online merchants. For accounts receivable, we are exposed to credit risk in the event of nonpayment by online merchants to the extent the amounts are recorded in the consolidated balance sheets. We extend different levels of credit to online merchants and maintain reserves for potential credit losses based upon the expected collectability of accounts receivable. We manage credit risk related to our merchants by performing periodic evaluations of credit worthiness and consumer indebtedness and applying other credit risk monitoring procedures.

The following table summarizes our merchants that represented 10% or more of Accounts receivable and Revenue:

                  Accounts Receivable                Revenue                                      
                  As of December 31,                 Year Ended December 31,                      
                  2024                     2023      2024                         2023      2022  
  Customer A      18                         17      10                           11        13    
  Customer B      *                          11      *                            *         *     
  Customer C      12                          *      *                            *         *     

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* Represents less than 10%

Cash and Cash Equivalents

Cash and cash equivalents consist of cash in banks, bank deposits,