Market risk. Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The market risks consist primarily of foreign currency risks and, to a lesser degree, interest rate risks. Main currency exposures are the Swiss franc and the Euro. The Group is not hedging any of these risks. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The group identifies two main types of foreign currency risk: foreign currency transaction risk and foreign currency translation risk. The Group incurs foreign currency transaction risk on accounts receivable, accounts payable and other monetary items that are denominated in a currency other than the Company’s functional currency. Foreign currency transaction risk in the Group’s operations also arises from the variability of cash flows in respect of forecasted transactions. The foreign currency transaction risk is not significant. Foreign operations which do not have the Euro as their functional currency give rise to a translation risk. The Group operates internationally and is exposed to foreign exchange risks arising from currency exposures, primarily with respect to the Swiss Franc (CHF). The carrying amounts of the Group’s main foreign currency denominated monetary assets and monetary liabilities in CHF at the end of the reporting period are as follows: 31.12.2023 CHF 31.12.2022 CHF Inventory 2,125,800 2,581,381 Cash and cash equivalents 617,310 1,462,972 Long term debt (618,382) - Short term debt (2,906,946) - The Group has exposures to the Swiss Franc (CHF) and the US dollar (USD) due to their net investments in foreign operations. Foreign exchange exposures are currently not hedged. The following table shows the sensitivity to foreign exchange rate changes (CHF / EUR and USD / EUR), with all other variables held constant, of the Group’s income statement and equity: As of 31 December 2023, if the EUR had weakened 5% against the CHF with all other variables held constant, the loss for the period would have been EUR 417,529 higher (2022: EUR 328,731). Conversely, if the EUR had strengthened 5% against the CHF with all other variables held constant, the loss of the period would have been EUR 418,054 lower (2022: EUR 328,702). As of 31 December 2023, if the EUR had weakened 5% against the USD with all other variables held constant, the loss for the peri...
