What changed in this filing

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

2020-09-10 compared with 2019-09-12 · 46 added, 42 removed, 3 unchanged (97% of the section changed)

Quantitative and Qualitative Disclosures About Market Risk.

are exposed to a variety of risks, including changes in interest rates, foreign currency exchange rates and inflation.

of June 30, 2019, we had $4.1 million in cash and cash equivalents and $20.7 million in short-term bank deposits and restricted

adhere to an investment policy set by our investment committee, which aims to preserve our financial assets, maintain adequate

liquidity and maximize return while minimizing exposure to the NIS.

Such policy further provides that we should hold most of our

current assets in bank deposits and the remainder of our current assets should be invested in low risk instruments.

the currency of our financial portfolio is mainly in U.S.

dollars and we use options contracts in order to hedge our exposures

to currencies other than the U.S.

invest a major portion of our cash surplus in bank deposits in banks in Israel.

Since the bank deposits typically carry fixed

interest rates, financial income over the holding period is not sensitive to changes in interest rates.

However, our interest

gains from future deposits may decline in the future as a result of changes in the financial markets.

In any event, given the

historic low levels of the interest rate, we estimate that a further decline in the interest rate we are receiving will not result

in a material adverse effect to our business.

Currency Exchange Risk and Inflation

significant portion of our expenditures, including salaries, materials, consultants’

fees and facility expenses relate to

our operations in Israel.

The cost of those Israeli operations, as expressed in U.S.

dollars, is influenced by the extent to which

any increase in the rate of inflation in Israel is not offset (or is offset on a lagging basis) by a devaluation of the NIS in

relation to the U.S.

dollar declines in value in relation to the NIS, it will become more expensive for us

to fund our operations in Israel.

In addition, as of June 30, 2019, we own net financial balances in NIS of approximately ($2,569,000).

a 10% appreciation of the NIS against the U.S.

dollar, we would experience exchange rate loss of approximately $234,000, while

assuming a 10% devaluation of the NIS against the U.S.

dollars, we would experience an exchange rate gain of approximately $285,000,

in both cases excluding the effect of our hedging transactions (as described below).

exchange rate of the U.S.

dollar to the NIS, based on exchange rates published by the Bank of Israel, was as follows:

Quantitative and Qualitative Disclosures About

We are exposed to a variety of risks, including

changes in interest rates, foreign currency exchange rates and inflation.

As of June 30, 2020, we had $8.3 million

in cash and cash equivalents, $38 million in short-term bank deposits and restricted deposits and $12.7 million in long-term bank

deposits and restricted deposits.

We adhere to an investment policy set by

our investment committee, which aims to preserve our financial assets, maintain adequate liquidity and maximize return while minimizing

exposure to the NIS.

Such policy further provides that we should hold most of our current assets in bank deposits and the remainder

of our current assets should be invested in low risk instruments.

As of June 30, 2020, the currency of our financial portfolio

is mainly in U.S.

dollars and we use options contracts in order to hedge our exposures to currencies other than the U.S.

Interest Rate Risk

We invest a major portion of our cash surplus

in bank deposits in banks in Israel.

Since the bank deposits typically carry fixed interest rates, financial income over the holding

period is not sensitive to changes in interest rates.

However, our interest gains from future deposits may decline in the future

as a result of changes in the financial markets.

In any event, given the historic low levels of the interest rate, we estimate

that a further decline in the interest rate we are receiving will not result in a material adverse effect to our business.

Foreign Currency Exchange Risk and Inflation

A significant portion of our expenditures,

including salaries, materials, consultants’

fees and facility expenses relate to our operations in Israel.

The cost of those

Israeli operations, as expressed in U.S.

dollars, is influenced by the extent to which any increase in the rate of inflation in

Israel is not offset (or is offset on a lagging basis) by a devaluation of the NIS in relation to the U.S.

dollar declines in value in relation to the NIS, it will become more expensive for us to fund our operations in Israel.

as of June 30, 2020, we own net financial balances in NIS of approximately ($13,989,000).

Assuming a 10% appreciation of the NIS against

dollar, we would experience exchange rate loss of approximately $1,272,000, while assuming a 10% devaluation of the NIS

against the U.S.

dollars, we would experience an exchange rate gain of approximately $1,554,000, in both cases excluding the effect

of our hedging transactions (as described below).

The exchange rate of the U.S.

the NIS, based on exchange rates published by the Bank of Israel, was as follows:

Year Ended June 30,

1 unchanged sentence

Rate at period-end

use currency transactions of options and forward contracts to decrease the risk of financial exposure from fluctuations in the

exchange rate of the U.S.

dollar against the NIS.

the year ended June 30, 2019, our net realized loss from hedging transactions that are non-designated and consist primarily of

options strategies and also forward contracts to minimize the risk associated with the foreign exchange effects of monetary assets

and liabilities denominated in NIS was $373,000.

We use currency transactions of options

and forward contracts to decrease the risk of financial exposure from fluctuations in the exchange rate of the U.S.

dollar against

For the year ended June 30, 2020, our net

realized loss from hedging transactions that are non-designated and consist primarily of options strategies and also forward contracts

to minimize the risk associated with the foreign exchange effects of monetary assets and liabilities denominated in NIS was $11,000.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk