Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

TAXES ON INCOME

v3.24.0.1
TAXES ON INCOME
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
TAXES ON INCOME
NOTE 13: -
TAXES ON INCOME
 
  a.
Corporate tax rates in Israel:
 
The corporate tax rate in Israel is 23%.
 
  b.
Income taxes of non-Israeli subsidiaries:
 
Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence.
 
  c.
Carryforward tax losses and credits:
 
As of December 31, 2023, the Company had operating loss carry forwards for Israeli income tax purposes of approximately $544,000 which may be offset indefinitely against future taxable income.
 
  d.
Deferred income taxes:
 
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The principal components of the Company’s deferred tax assets are as follows:
 
   
December 31,
  
   
2023
    
2022
  
             
Deferred tax assets:
            
             
Net operating loss carryforward
  
$
125,170
    
$
94,973
  
Research and development costs carryforward
    
19,212
      
18,728
  
Capital loss carryforward
    
1,900
      
90
  
Inventory provision
    
1,608
      
948
  
Accrued expenses
    
1,732
      
727
  
Property and equipment
    
1,022
      
311
  
Lease liabilities
    
5,855
      
6,328
  
Other
    
2,419
      
3,020
  
                 
Total deferred tax assets
    
158,918
      
125,125
  
                 
Valuation allowance
    
(152,965
)
    
(118,932
)
                 
Deferred tax liabilities:
                
                 
Right-of-use assets
    
(5,862
)
    
(6,193
)
Other
    
(91
)
    
-
  
                 
Total deferred tax liabilities
    
(5,953
)
    
(6,193
)
                 
Net deferred tax
  
$
-
    
$
-
  
 
Based on the available evidence, management believes that it is more likely than not that certain of its deferred tax assets relating to net operating loss carryforwards and other temporary differences in Israel will not be realized and accordingly a valuation allowance has been provided.
 
As of December 31, 2023, and 2022, the Company has not provided a deferred tax liability in respect of cumulative undistributed earnings relating to the Company’s foreign subsidiaries, as the Company intends to keep these earnings permanently invested.
 
  e.
Loss before taxes on income is comprised as follows:
 
   
Year ended December 31,
  
   
2023
    
2022
    
2021
  
                   
Domestic (Israel)
  
$
(125,228
)
  
$
(127,631
)
  
$
(153,091
)
Foreign
    
2,416
      
1,084
      
(184
)
 
                        
Loss before taxes on income
  
$
(122,812
)
  
$
(126,547
)
  
$
(153,275
)
 
  f.
Income taxes are comprised as follows:
 
   
Year ended December 31,
  
   
2023
    
2022
    
2021
  
                   
Current
  
$
642
    
$
325
    
$
284
  
                         
Domestic (Israel)
    
131
      
115
      
232
  
Foreign
    
511
      
210
      
52
  
 
                        
Income taxes
  
$
642
    
$
325
    
$
284
  
 
  g.
The reconciliation of the tax benefit at the Israeli statutory tax rate to the Company’s income taxes is as follows:
 
   
Year ended December 31,
  
   
2023
    
2022
    
2021
  
                   
Israel tax provision at statutory rate
    
23.00
%
    
23.00
%
    
23.00
%
Non-deductible share-based compensation
    
(3.87
)%
    
(2.77
)%
    
(2.00
)%
Effect of other permanent differences
    
(0.31
)%
    
0.05
%
    
0.47
%
Change in valuation allowance
    
(27.71
)%
    
(18.70
)%
    
(24.41
)%
Issuance costs
    
6.52
%
    
6.06
%
    
3.68
%
Provision to return
    
0.24
%
    
(8.00
)%
    
(0.77
)%
Capital losses
    
1.47
%
    
-
      
-
  
Other adjustments
    
0.14
%
    
0.10
%
    
(0.16
)%
 
                        
Effective tax rate
    
(0.52
)%
    
(0.26
)%
    
(0.19
)%
 
  h.
Tax assessments:
 
The Company’s tax assessments through 2017 are considered final.
 
As of December 31, 2023, the tax returns of the Company are still subject to audits by the tax authorities for the tax years 2018 onwards.
 
  i.
Uncertain tax positions:
 
The Company has reviewed the tax positions taken, or to be taken, in its tax returns for all tax years currently open to examination by a taxing authority. As of December 31, 2023 and 2022, the Company has not recorded any uncertain tax position liability.