| SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated
financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S.
GAAP”).
a. Use of estimates: The preparation of
the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that
affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the period. The Company’s management believes that the
estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could
differ from those estimates. On an ongoing basis,
the Company’s management evaluates estimates, including those related to intangible assets and goodwill .
b. Financial statements in United States dollars: Most of the revenues
of the Company and its subsidiaries are denominated in U.S. dollars. The U.S. dollar is the primary currency of the economic environment
in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is
the U.S. dollar. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars
in accordance with Accounting Standards Codification (“ASC”) No. 830 “Foreign Currency Matters”. Changes in currency
exchange rates between the Company’s functional currency and the currency in which a transaction is denominated are included in
the Company’s statements of operations as financial income, net in the period in which the currency exchange rates change.
c. Principles of consolidation: The consolidated
financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions, including profits
from intercompany sales, have been eliminated upon consolidation.
d. Cash equivalents: Cash equivalents
are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition.
e. Short-term bank deposits: Short-term bank
deposits are deposits with an original maturity of more than three months but less than one year from the date of acquisition.
f. Marketable securities: The Company accounts
for investments in marketable securities in accordance with ASC 320, “Investments - Debt Securities”. Management determines
the appropriate classification of its investments at the time of purchase and re-evaluates such determinations at each balance sheet date.
The Company classifies its marketable securities as either short-term or long-term based on each instrument’s underlying contractual maturity
date and the entity’s expectations of sales and redemptions in the following year. The Company classifies
all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains
and losses, net of tax, reported in “accumulated other comprehensive income (loss)” in shareholders’ equity. Realized gains
and losses on sales of marketable securities are included in financial income, net and are derived using the specific identification method
for determining the cost of securities. The amortized cost
of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest,
are included in financial income, net. At each reporting
period, the Company evaluates whether declines in fair value below amortized cost are due to expected credit losses, as well as the Company’s
ability and intent to hold the investment until a forecasted recovery occurs in accordance with ASC 326, Financial Instrument-
Credit losses. Allowance for credit losses on available-for-sale marketable securities are recognized in the Company’s consolidated
statements of operations, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss)
in shareholders’ equity. The Company did
not recognize an allowance for credit losses on marketable securities for the years ended December 31, 2022 and 2021. During 2023 the
Company recorded an allowance for credit losses on available-for-sale marketable securities of $93 which was recognized in the Company’s
consolidated statements of operations.
g. Inventories: Inventories are
measured at the lower of cost or net realizable value. The cost of inventories comprises cost of purchases and costs incurred in bringing
the inventories to their present location and condition. Inventory write-off is measured as the difference between the cost of the inventory
and net realizable value and is charged to cost of sales. Cost of inventories
is determined as follows: Raw materials and
components - on a first-in, first-out cost basis. Finished goods -
materials, on a first-in, first-out cost basis and other direct manufacturing costs. Inventory provisions have been provided to cover risks arising from slow-moving items, technological obsolescence and excess inventories
according to revenue forecasts. During the years
ended December 31, 2023, 2022 and 2021, the Company recorded inventory provisions and write-offs in a total amount of $22,001, $11,445
and $4,909, respectively. For the year ended
December 31, 2023, a part of inventory write-offs and provisions of $11,009 was recorded as a result of the Company’s restructuring (see
Note 2ac).
h. Property, plant and equipment: Property, plant
and equipment are measured at cost, including directly attributable costs, less accumulated depreciation and accumulated impairment losses.
Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows:
%
Office furniture and equipment 7 - 20
Computer and peripheral equipment 33
Machinery and equipment 7 - 33
Leasehold improvements (*)
Building and land (**)
(*) Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including
the extension option held by the Company and intended to be exercised) and the expected life of the improvement.
(**) Building and land consist of land and an ink manufacturing plant. In September 2018, the Company purchased
the land which includes long-term leasehold rights, with a lease term of 49 years, which may be renewed for an additional 49 years. The
manufacturing plant useful life is 25 years.
i. Leases: The Company determines
if an arrangement is a lease at inception. Contracts containing a lease are further evaluated for classification as an operating or finance
lease. In determining the lease’s classification the Company assesses among other criteria: (i) if 75% or more of the remaining
economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) if 90% or more
of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. Operating leases are
included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and non-current operating lease
liabilities in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease
term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. For leases with terms
greater than 12 months, the Company records the ROU asset and liability at the commencement date based on the present value of lease payments
according to their term. The Company also elected the practical expedient to not separate lease
and non-lease components for its leases. The Company uses
incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments
at commencement date. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company
will exercise that option. Lease expenses are recognized on a straight-line basis over the lease term or the useful life of the leased
asset. In addition, the
carrying amount of the ROU and lease liabilities are remeasured if there is a modification, a change in the lease term, a change in the
in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.
j. Business combinations: The Company accounts
for business combinations in accordance with ASC No. 805, “Business Combinations” (“ASC No. 805”). ASC No. 805
requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their
fair values as of that date. The excess of the fair value of the purchase price over the fair values of the identifiable assets and liabilities
is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to
intangible assets. Acquisition related costs are expensed in the statement of operations in the period incurred.
k. Goodwill: Goodwill reflects
the excess of the purchase price of a business acquired over the fair value of net assets acquired. Under ASC No. 350, “Intangibles
– Goodwill and other” (“ASC No. 350”), goodwill is not amortized but is tested for impairment at least annually
or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Company has elected to
perform an annual impairment test of goodwill as of December 31 of each year, or more frequently if impairment indicators are present. The Company operates in one operating segment and this segment comprises
the Company’s sole reporting unit. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary
to perform the quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication
of impairment, no further impairment testing is required. If an entity elects not to use this option, or if an entity determines that
it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the entity prepares a quantitative
analysis to determine whether the carrying value of a reporting unit exceeds its estimated fair value. If the carrying value of a reporting
unit exceeds its estimated fair value, the entity recognizes an impairment of goodwill for the amount of this excess. During the years
ended December 31, 2023, 2022 and 2021, no impairment of goodwill was recorded.
l. Intangible assets: Acquired identifiable
finite-lived intangible assets are amortized on a straight-line basis or accelerated method over the estimated useful lives of the assets.
The basis of amortization approximates the pattern in which the assets are utilized, over their estimated useful lives. The Company routinely
reviews the remaining estimated useful lives of finite-lived intangible assets. In case the Company reduces the estimated useful life
for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life.
m. Impairment of long-lived assets: Property,
plant and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360,
“Accounting for the Impairment or Disposal of Long-Lived Assets”, whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a
comparison of the carrying amount of the assets to the future undiscounted cash flows expected to be generated by the assets. If
such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of
the assets exceeds the fair value of the assets. During the years
ended December 31, 2022, and 2021, no impairment of long-lived assets and finite-lived intangible assets was recorded. For the year ended
December 31, 2023, an impairment loss of $1,118, related to operating lease right-of-use assets was recorded as a result of the Company’s
restructuring (see Note 2ac).
n. Revenue recognition: The Company generates
revenues from sales of systems, consumables and services, including software subscriptions and transaction-based revenues. The Company
sells its products directly to end-users and indirectly through independent distributors, all of whom are considered end-users. The Company recognizes
revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company recognizes revenue
under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration
the Company expects to receive in revenue. Therefore, the Company identifies a contract with a customer, identifies the performance obligations
in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and
recognizes revenues when, or as, the Company satisfies a performance obligation. Revenues from products, which consist of systems and consumables, are recognized at the point in time when control has transferred, in
accordance with the agreed-upon delivery terms. Revenues from services are derived mainly from the sale of print heads, spare parts, upgrade
kits, service contracts and software subscriptions. The Company’s revenues from print heads, spare parts and upgrade kits revenues (collectively
“Spare parts”) are recognized at the point in time when control has transferred, contracts and software subscriptions are
recognized over time, on a straight-line basis, over the period of the service. For multiple performance
obligations arrangements, such as selling a system with service contract, installation and training, the Company accounts for each performance
obligation separately as it is distinct. The transaction price is allocated to each distinct performance obligation on a relative standalone
selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed, or service
has been rendered. In most cases, the Company can establish SSP based on the observable prices of services sold separately in comparable
circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have
sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances
change. The Company does
not account for training and installation as a separate performance obligation due to its immateriality in the context of its contracts.
Accordingly, revenues from training and installation are recognized upon the delivery of its systems. The Company periodically
provides customer incentive programs in the form of product discounts, volume-based rebates and warrants (see also note 11f), which are
accounted for as a variable consideration that are deducted from revenue in the period in which the revenue is recognized. These reductions
to revenue are made based upon estimates that are determined according to historical experience and the specific terms and conditions
of the incentive. The Company maintains a provision
for returns which is estimated, primarily based on historical experience as well as management judgment, and is recorded as a reduction
of revenue. Such provision amounted to $1,166 and $1,084 as of December 31, 2023 and 2022, respectively, and is included under accrued
expenses and other current liabilities in the consolidated balance sheets. Contract liabilities
include amounts received from customers for which revenue has not yet been recognized. Contract liabilities amounted to $2,218 and $5,941
as of December 31, 2023 and 2022, respectively, and are presented under deferred revenues and customers advances and other non-current
liabilities. During the year ended December 31, 2023, the Company recognized revenues in amount of $5,701, which have been included
in the contract liabilities balance on January 1, 2023. In cases where the
Company’s customers trade-in old systems as part of a sale of new systems, the fair value of the old systems is recorded as inventory,
provided that such value can be recoverable. Revenue disaggregated
by revenue source consists of the following:
Year
Ended December 31,
2023 2022 2021
Systems $ 48,998 $ 119,073 $ 181,445
Ink and consumables 112,047 103,429 101,192
Service - spare parts 36,855 28,619 21,936
Service contracts and software subscriptions 21,886 20,397 17,433
Total revenue $ 219,786 $ 271,518 $ 322,006 The following table presents
revenue disaggregated by geography based on customer location:
Year
Ended December 31,
2023 2022 2021
U.S. $ 123,550 $ 138,515 $ 211,294
EMEA 60,706 93,243 78,686
Asia Pacific 22,006 24,396 23,341
Other 13,524 15,364 8,685
Total revenue $ 219,786 $ 271,518 $ 322,006 Sales to the Company’s
independent distributors accounted for approximately 13%, 19% and 13% of 2023, 2022 and 2021 revenues, respectively. Remaining performance
obligations represent contracted revenues that have not yet been recognized, and which includes deferred revenues and non-cancelable contracts
that will be invoiced and recognized as revenue in future periods. The Company elected to apply the optional exemption under paragraph
ASC 606-10-50-14(a) not to disclose the remaining performance obligations that relate to contracts with an original expected duration
of one year or less for which deferred revenues have not been recorded yet. The following table
represents the remaining performance obligations as of December 31, 2023, which are expected to be satisfied and recognized in future
periods:
2024 2025 202 6
Service contracts and software subscriptions $ 2,885 $ 97 $ 18 The Company has
elected to apply the practical expedient for financing component for transactions in which the difference between the payment date and
the revenue recognition timing is up to 12 months. Payment terms between the Company and its payors are typically up to twelve months,
and vary by the type of payer, country of sale and the products or services offered.
o. Shipping and Handling: Shipping and handling
fees charged to the Company’s customers are recognized as revenue in the period shipped and the related costs for providing these services
are recorded as a cost of revenue.
p. Cost of revenues: Cost
of revenues is comprised mainly of cost of systems and parts, ink production, employees’ salaries and related costs, allocated overhead
expenses, import taxes, inventory write-offs, royalties and shipping and handling fees.
q. Warranty costs: The Company typically
provides assurance type standard warranty for six months on its systems including parts and labor. A provision is recorded for estimated
warranty costs at the time revenues are recognized based on historical warranty costs and management’s estimates. Factors that affect
the Company’s warranty liability include the number of systems, historical rates of warranty claims and cost per claim. The Company periodically
assesses the adequacy of its recorded warranty liabilities and adjusts the amounts thereof as necessary. The following are
the changes in the liability for product warranty from January 1, 2022 to December 31, 2023:
Balance at January 1, 2022 $ 4,612
Additions and adjustments to cost of revenues 2,946
Reduction for payments and costs to satisfy claims (5,640 )
Balance at December 31, 2022 $ 1,918
Additions and adjustments to cost of revenues 2,492
Reduction for payments and costs to satisfy claims (3,087 )
Balance at December 31, 2023 $ 1,323
r. Research and development expenses, net: Research and development
expenses, net of government grants, are charged to the statement of operations, as incurred, except for development expenses which are
capitalized as described in note 2s.
s. Internal use software: The Company capitalizes
qualifying costs incurred during the application development stage related to software developed for internal use. These costs are capitalized
based on the qualifying criteria. Such costs are amortized over the software’s estimated life of three years. Costs incurred to develop
software applications consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use
computer software, and (b) payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the
development or implementation of the software. Capitalized internal-use software costs are included in intangibles assets, net in the
consolidated balance sheet.
t. Implementation costs incurred in cloud computing arrangement that is a service contract: The Company’s cloud computing
arrangement (“CCA”) that is a service contract consists of an arrangement with third party vendors for internal use of their
software applications that they host. The Company defers implementation costs incurred in relation to that arrangement, including costs
for software application coding, configuration, integration and customization, while associated process reengineering, training, maintenance
and data conversion costs are expensed. The short-term portion of deferred costs are included in prepaid expenses and other current assets
in the consolidated balance sheets, while the long-term portion of deferred costs are included in other non-current assets. Amortized
implementation costs incurred in CCA that are service contracts will be recognized using the straight-line method over eight years, which
represents the noncancellable terms of the CCA, plus any optional renewal periods that the Company is reasonably certain to exercise.
Deferred implementation costs are subject to assessment for potential impairment whenever events or changes in circumstances indicate
that the carrying values may not be recoverable. Deferred implementation costs incurred
in CCA that is a service contract amounted to $7,424 as of December 31, 2023. Amortization of the implementation
costs incurred in a CCA that is a service contract that commenced on January 1, 2023 amounted to $848.
u. Accounting for share-based compensation: The Company accounts
for share-based compensation in accordance with ASC No. 718, “Compensation – Stock Compensation” (“ASC No. 718”)
that requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model.
The value of the award is recognized as an expense over the requisite service periods in the Company’s consolidated statement of
operations. The Company selected
the binomial option pricing model as the most appropriate fair value method for its stock options awards with the following assumptions
for the years ended December 31, 2023, 2022 and 2021:
Year
ended December 31,
2023 2022 2021
Suboptimal exercise multiple 2.8 2.8 2.5
Risk free interest rate 4.26%-4.30% 3.02%-4.09% 0.09%-1.36%
Volatility 57.75%-60.75% 58.67%-69.13% 42.57%-58.49%
Dividend yield 0% 0% 0% The expected volatility
is derived from the volatility of the Company’s share price based upon actual historical stock price movements. The computation
of the suboptimal exercise multiple is derived from empirical studies, based on those studies, the early exercise factor of public companies
is approximately 150% for managers and 100% for other employees. The interest rate for the period within the contractual life of the award
is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The Company currently has no plans to distribute dividends
and intends to retain future earnings to finance the development of its business. The fair value of each restricted
stock unit (“RSU”) including performance based RSUs (“PSU”) is the market value of a single ordinary share of
the Company, as determined based on the closing price of the Company’s ordinary shares on the date immediately prior to the day
of grant. The Company recognizes compensation
expenses for the value of its awards, which have graded vesting based on service conditions, using the straight-line method, over the
requisite service period of each of the awards. The Company recognizes forfeitures of awards as they occur.
v. Derivatives and hedging: The Company follows
ASC No. 815, “Derivatives and Hedging” which requires companies to recognize all of their derivative instruments as either
assets or liabilities in the balance sheets at fair value. Accounting for changes in fair value (i.e., gains or losses) of a derivative
instrument depends on whether it has been designated and qualifies as part of a hedging transaction and further, on the type of hedging
transaction. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging
instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign
operation. Due to the Company’s global operations, it is exposed to foreign currency exchange rate fluctuations in the normal course
of its business. The Company uses
derivative financial instruments, specifically foreign currency forward and option contracts, to manage exposure to foreign currency risks,
by hedging a portion of the Company’s forecasted payroll and related expenses denominated in New Israeli Shekels that it expects
to incur within a year. The effect of exchange rate changes on foreign currency hedging contracts is expected to partially offset the
effect of exchange rate changes on the underlying hedged item. For derivative instruments
that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is
attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of other comprehensive income
(loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains or losses
from contracts that were not designated as hedging instruments are recognized in “financial income, net”. The Company measured
the fair value of these contracts in accordance with ASC No. 820, “Fair Value Measurements and Disclosures” (“ASC No.
820”), and they were classified as level 2 of the fair value hierarchy.
1. Derivative instruments notional amounts: The following table summarizes the
notional amounts for hedged items:
December 31,
2023 2022
Designated cash flow hedges $ 12,284 $ 38,465
Non-designated hedges - 491
$ 12,284 $ 38,956
2. Derivative instrument outstanding: As of December 31,
2023 and 2022, the fair value of the Company’s outstanding forward and option contracts amounted to $595 and $1,000 which are included
within “Prepaid expenses and other current assets” and “accrued expenses and other current liabilities”, respectively,
on the balance sheets.
3. Derivative instrument gains and losses The following table sets forth the
expense (income) from derivatives instruments included in the consolidated statements of operations and reclassified from other comprehensive
income:
Year ended December 31,
2023 2022 2021
Cost of revenues $ 814 $ 674 $ (33 )
Research and development 1,144 1,029 (48 )
Sales and marketing 368 365 (21 )
General and administrative 548 481 (31 ) The Company’s outstanding derivatives
designated as cash flow hedging instruments and their related gains and losses, are reported in the statement of cash flows as cash flows
from operating activities. The maximum length of time over which
the Company hedges its exposure to the variability in future cash flows for forecasted transactions is less than 12 months.
w. Income taxes: The Company accounts
for income taxes and uncertain tax positions in accordance with ASC No. 740, “Income Taxes” (“ASC No. 740”). ASC
No. 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on
temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates
and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary,
to reduce deferred tax assets to amounts more likely than not to be realized. Deferred tax assets and liabilities are classified as non-current
assets and liabilities, respectively. ASC No. 740 contains
a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position
taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than
not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals
or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized
upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits on its taxes on income.
x. Concentrations of credit risks: Financial instruments
that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents,
bank deposits, marketable securities, foreign exchange contracts and trade receivables. The majority of
the Company’s and its subsidiaries’ cash and cash equivalents, bank deposits and marketable securities are invested in major banks in
Israel and the U.S. Generally, these cash equivalents may be redeemed upon demand and, therefore management believes that they bear a
lower risk. The Company attempts
to limit its exposure to interest rate risk by investing in securities with maturities of less than four years; however, the Company may
be unable to successfully limit its risk to interest rate fluctuations. At any time, a sharp rise in interest rates could have a material
adverse impact on the fair value of its investment portfolio. Conversely, declines in interest rates could have a material favorable impact
on the fair value of its investment portfolio. Increases or decreases in interest rates could have a material impact on interest earnings
related to new investments during the period. The trade receivables of the Company
and its subsidiaries are mainly derived from sales to customers located in the United States, Europe, Asia Pacific and Latin America.
The Company performs ongoing credit evaluations of its customers. In certain circumstances, the Company may require letters of credit
from its customers, other collaterals or additional guarantees. The allowance for credit loss is based on the Company’s assessment
of historical collection experience, customer creditworthiness, and current and future economic and market conditions. The Company regularly
reviews the adequacy of the allowance for credit loss based on a combination of factors, including an assessment of the current customer’s
aging balance, the nature and size of the customer and the financial status of the customer. Accounts receivable deemed uncollectable
are charged against the allowance for credit loss when identified. Doubtful debt expense is included in Sales and Marketing in the Consolidated
Statements of Income (Loss). The allowance for credit loss as of December 31, 2023 and 2022, amounted to $5,227 and $738, respectively. The change in 2023 current period
provision allowance for credit loss amounted to $5,152, which was offset by a write-off amount of $663.
y. Transfers of financial assets: ASC 860 “Transfers
and Servicing”, (“ASC 860”), establishes a standard for determining when a transfer of financial assets should be accounted
for as a sale. The Company’s arrangements are such that the underlying conditions are met for the transfer of financial assets to qualify
for accounting as a sale. The transfers of financial assets are typically performed by the factoring of receivables to two financial institutions. For the year ended
December 31, 2023, and 2022, the Company sold trade receivables to financial institutions in a total net amount of $2,262 and $616, respectively.
Control and risk of those trade receivables were fully transferred in accordance with ASC 860. During the year ended December 31, 2023,
and 2022, the Company recorded an aggregate amount of $356 and $41, respectively, as financial expenses related to its factoring arrangeme |
