☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Ordinary Shares, par value ILS 0.10 per share | ALLT | The |
Large accelerated filer ☐ | Accelerated filer ☒ | Non-accelerated filer ☐ |
Emerging growth company ☐ |
U.S. GAAP ☒ | International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ | Other ☐ |
7 | ||
7 | ||
7 | ||
7 | ||
A. | 7 | |
B. | Capitalization and Indebtedness | |
C. | Reasons for Offer and Use of Proceeds | |
D. | Risk Factors | |
32 | ||
A. | History and Development of Allot | 32 |
B. | Business Overview | |
C. | Organizational Structure | |
D. | Property, Plant and Equipment | |
A. | Operating Results | |
B. | Liquidity and Capital Resources | |
C. | Research and Development, Patents and Licenses | |
D. | Trend Information | |
E. Critical Accounting Estimates | ||
A. | Directors and Senior Management | |
B. | Compensation of Officers and Directors | |
C. | Board Practices | 61 |
D. Employees | 67 | |
E. | Share Ownership | |
A. | Major Shareholders | |
B. Record Holders | 71 | |
C. Related Party Transactions | ||
D. Interests of Experts and Counsel | ||
A. | Consolidated Financial Statements and Other Financial Information. | |
B. | Significant Changes | |
A. | Share Capital | |
B. | Memorandum and Articles of Association | |
C. | Material Contracts | |
D. | Exchange Controls | |
E. | Taxation | |
F. | Dividends and Paying Agents | |
G. | Statement by Experts | |
H. | Documents on Display | |
I. | Subsidiary Information | |
A. | Material Modifications to the Rights of Security Holders | |
B. | Use of Proceeds | |
92 | ||
92 | ||
A. | [Reserved] |
Year ended December 31, | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Consolidated Statements of Operations: | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Products | $ | 62,642 | $ | 54,432 | $ | 48,727 | $ | 56,169 | $ | 67,440 | ||||||||||
Services | 37,325 | 35,937 | 33,265 | 39,668 | 42,660 | |||||||||||||||
Total revenues | 99,967 | 90,369 | 81,992 | 95,837 | 110,100 | |||||||||||||||
Cost of revenues(1): | ||||||||||||||||||||
Products | 26,707 | 20,401 | 19,258 | 20,061 | 22,743 | |||||||||||||||
Services | 6,720 | 7,494 | 9,272 | 9,288 | 11,091 | |||||||||||||||
Total cost of revenues | 33,427 | 27,895 | 28,530 | 29,349 | 33,834 | |||||||||||||||
Gross profit | 66,540 | 62,474 | 53,462 | 66,488 | 76,266 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development, gross | 27,674 | 24,827 | 22,244 | 25,792 | 31,839 | |||||||||||||||
Less grant participation | 1,252 | 606 | 392 | 374 | 378 | |||||||||||||||
Research and development, net(1) | 26,422 | 24,221 | 21,852 | 25,418 | 31,461 | |||||||||||||||
Sales and marketing(1) | 43,318 | 35,290 | 38,316 | 40,849 | 47,105 | |||||||||||||||
General and administrative(1) | 12,702 | 9,812 | 10,696 | 10,416 | 6,678 | |||||||||||||||
Total operating expenses | 82,442 | 69,323 | 70,864 | 76,683 | 85,244 | |||||||||||||||
Operating (loss) | (15,902 | ) | (6,849 | ) | (17,402 | ) | (10,195 | ) | (8,978 | ) | ||||||||||
Financing income (expenses), net | (584 | ) | 1,059 | 894 | 2,208 | 1,960 | ||||||||||||||
Income (loss) before income tax expenses (benefit) | (16,486 | ) | (5,790 | ) | (16,508 | ) | (7,987 | ) | (7,018 | ) | ||||||||||
Income tax expenses (benefit) | 3,356 | 2,204 | 1,564 | 2,428 | 1,641 | |||||||||||||||
Net income (loss) | $ | (19,842 | ) | $ | (7,994 | ) | $ | (18,072 | ) | $ | (10,415 | ) | $ | (8,659 | )$ | |||||
Basic net (loss) per share | $ | (0.59 | ) | $ | (0.24 | ) | $ | (0.54 | ) | $ | (0.31 | ) | $ | (0.25 | )$ | |||||
Diluted net (loss) per share | $ | (0.59 | ) | $ | (0.24 | ) | $ | (0.54 | ) | $ | (0.31 | ) | $ | (0.25 | )$ | |||||
Weighted average number of shares used in computing basic net earnings (loss) per share | 33,419,917 | 33,202,309 | 33,253,158 | 33,710,507 | 34,250,582 | |||||||||||||||
Weighted average number of shares used in computing diluted net earnings (loss) per share | 33,419,917 | 33,202,309 | 33,253,158 | 33,710,507 | 34,250,582 |
Year ended December 31, | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cost of revenues | $ | 324 | $ | 367 | $ | 362 | $ | 316 | $ | 264 | ||||||||||
Research and development expenses, net | 1,637 | 1,240 | 648 | 678 | 847 | |||||||||||||||
Sales and marketing expenses | 2,802 | 1,833 | 1,166 | 928 | 1,257 | |||||||||||||||
General and administrative expenses | 2,407 | 1,701 | 1,190 | 940 | 1,052 | |||||||||||||||
Total | $ | 7,170 | $ | 5,141 | $ | 3,366 | $ | 2,862 | $ | 3,420 |
At Year ended December 31, | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidated balance sheet data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 15,470 | $ | 23,326 | $ | 15,342 | $ | 16,336 | $ | 16,930$ | ||||||||||
Short-term deposits and restricted deposits | 42,903 | 29,821 | 31,471 | 23,008 | 28,740 | |||||||||||||||
Marketable securities | 64,921 | 60,507 | 63,194 | 64,290 | 61,012 | |||||||||||||||
Working capital | 126,756 | 123,980 | 111,786 | 101,999 | 79,444 | |||||||||||||||
Total assets | 208,215 | 190,940 | 184,525 | 189,844 | 215,169 | |||||||||||||||
Total liabilities | 44,810 | 33,637 | 41,396 | 53,491 | 83,318 | |||||||||||||||
Accumulated deficit | (96,181 | ) | (104,175 | ) | (122,247 | ) | (131,950 | ) | (140,609 | ) | ||||||||||
Share capital | 837 | 843 | 851 | 853 | 871 | |||||||||||||||
Total shareholders’ equity | 163,405 | 157,303 | 143,129 | 135,903 | 131,851 |
C. | Reasons for Offer and Use of Proceeds |
D. | Risk Factors |
A. | History and Development of Allot |
B. | Business Overview |
• | Network Security Threats: As reliance on the Internet has grown, service providers and enterprise networks have become increasingly vulnerable to a wide range of security threats, including DDoS attacks, spambots, malware and other threats. These attacks are designed to flood the network with traffic that consumes all available bandwidth, impeding operators’ ability to provide high quality broadband access to subscribers or preventing enterprises from using mission-critical applications. These threats also compromise network and data integrity. We believe service providers and enterprises can better protect against such attacks by detecting and neutralizing malicious traffic at very early stages, before such threats can compromise network integrity and |
• | End-User Security Threats: Broadband devices and mobile devices have also become increasingly vulnerable to online threats, such as malware, ransomware and phishing. Broadband and mobile device users have limited cyber-security expertise and therefore present easy targets for cybercriminals. In recent years, we have seen a growing demand from large and mid-size operators to offer such security services to their customers—both individual consumers and small and mid-size businesses. We believe few consumers download security applications to all of their personal devices, but CSPs are well positioned to provide security services because they are the sole providers of access to the network for their consumers, are capable of blocking attacks before they reach the consumer and have multiple touch points with consumers as trusted brands, through ongoing customer support and frequent communication. Research conducted in partnership with Coleman Parkes Research in the second half of 2020 revealed that 90% of consumers believe that CSPs should provide consumers with a security solution. Further, data provided and developed by Coleman Parkes Research in a separate research study of consumers’ attitudes toward cybersecurity revealed that 68% of mobile users are willing to pay an additional $3 per month for a security service, and that 64% of fixed broadband users are willing to pay an additional $6 per month for broadband a security service. |
• | Allot Secure Management (ASM): The Allot Secure Management platform creates a unified security experience for Allot security consumers by providing an end-to-end security management infrastructure that seamlessly communicates with and integrates each enforcement point—NetworkSecure, HomeSecure, DNSecure, IoTSecure, EndpointSecure, and BusinessSecure. On-net coverage is provided through NetworkSecure, HomeSecure, DNSecure, and IoTSecure, and off-net coverage through EndPoint Secure, and the ASM solution creates a flexible security architecture of advanced threat detection technologies in-network, at the consumer-premises equipment and at the endpoint device with network intelligence solutions, machine learning and comprehensive personalization capabilities. The ASM solution delivers a scalable platform that simplifies security service activation, system awareness, new enforcement point integration, threat event reporting and handling, operation and management by the consumer regardless of which enforcement point is active. |
o | Allot NetworkSecure |
o | Allot |
o | Allot DNSecure: A multi-tenant solution that allows the service provider to offer opt-in security services that allow subscribers to define and enforce safe-browsing limits (Parental Control) and to prevent incoming malware from infecting their devices (Anti-Malware). Services are enforced at the network DNS requests level, requiring no device involvement or battery consumption. |
o | Allot IoTSecure: A multi-tenant solution that enables CSPs to grant each of its enterprise customers a dedicated management console for monitoring and securing their mobile IoT deployments on the CSP network. |
o | Allot BusinessSecure: A multi-tenant solution that provides a simple, reliable and secure network for the connected business achieved through a small firmware agent installed on the business router, supported by the Allot Secure cloud, and a mobile application. These elements, working in concert, provide visibility into the network and block both external and internal attacks. |
o | EndPoint Secure: A multi-tenant solution that functions as an extension of NetworkSecure, securing the subscribers’ devices while off the Internet, producing seamless customer protection using market leading malware protection and controls. |
o | Allot Secure Cloud: The Allot Secure cloud provides to each enforcement point in the security architecture up-to-date threat intelligence, web categorization and device fingerprint data. The Allot Secure cloud uses machine learning and Artificial Intelligence technologies to identify connected devices, create device-specific profiles and provide anti-virus screening. |
• | Allot DDoS Secure/5G Protect: A solution that provides attack detection and mitigation services that protect commercial networks against inbound and outbound Denial of Service (“DoS”) and DDoS attacks, Zero Day attacks, worms, zombie and spambot behavior. |
Revenues by Location | ||||||||||||||||||||||||
2019 | % Revenues | 2018 | % Revenues | 2017 | % Revenues | |||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Europe | $ | 36,199 | 33 | % | $ | 45,730 | 48 | % | $ | 40,394 | 49 | % | ||||||||||||
Asia and Oceania | 42,994 | 39 | % | 22,018 | 23 | % | 13,936 | 17 | % | |||||||||||||||
Middle East and Africa | 14,331 | 13 | % | 13,726 | 14 | % | 12,130 | 15 | % | |||||||||||||||
Americas | 16,576 | 15 | % | 14,363 | 15 | % | 15,532 | 19 | % | |||||||||||||||
Total Revenues | $ | 110,100 | 100 | % | $ | 95,837 | 100 | % | $ | 81,992 | 100 | % |
Revenues by Location | ||||||||||||||||||||||||
2021 | % Revenues | 2020 | % Revenues | 2019 | % Revenues | |||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Europe | $ | 58,414 | 40 | % | $ | 94,644 | 70 | % | $ | 36,199 | 33 | % | ||||||||||||
Asia and Oceania | 44,227 | 30 | % | 23,519 | 17 | % | 42,994 | 39 | % | |||||||||||||||
Middle East and Africa | 23,568 | 16 | % | 9,628 | 7 | % | 14,331 | 13 | % | |||||||||||||||
Americas | 19,391 | 14 | % | 8,131 | 6 | % | 16,576 | 15 | % | |||||||||||||||
Total Revenues | $ | 145,600 | 100 | % | $ | 135,922 | 100 | % | $ | 110,100 | 100 | % |
C. | Organizational Structure |
Company | Jurisdiction of Incorporation | Percentage Ownership | ||||
Allot Communications Inc. | United States | 100 | % | |||
Allot Communications Europe SARL | France | 100 | % | |||
Allot Communications (Asia Pacific) Pte. Limited | Singapore | 100 | % | |||
Allot Communications (UK) Limited (with branches in Spain, Italy and Germany) | United Kingdom | 100 | % | |||
Allot Communications Japan K.K. | Japan | |||||
100 | % | |||||
Allot Communications Africa (PTY) Ltd | South Africa | 100 | % | |||
Allot Communications India Private Ltd | India | 100 | % | |||
Allot Communications Spain, S.L. Sociedad Unipersonal | Spain | 100 | % | |||
Allot Communications (Colombia) S.A.S | Colombia | 100 | % | |||
Allot MexSub | Mexico | 100 | % | |||
Allot Turkey Komunikasion Hizmeleri limited | Turkey | 100 | % | |||
Allot Australia (PTY) LTD | Australia | 100 | % |
D. | Property, Plant and Equipment |
A. | Operating Results |
Year Ended December 31, | ||||||||
2020 | 2021 | |||||||
Revenues: | ||||||||
Products | 68.1 | 60.6 | ||||||
Services | 31.9 | 39.4 | ||||||
Total revenues | 100 | 100 | ||||||
Cost of revenues: | ||||||||
Products | 21 | 21.7 | ||||||
Services | 8.5 | 8.9 | ||||||
Total cost of revenues | 29.5 | 30.6 | ||||||
Gross profit | 70.5 | 69.4 | ||||||
Operating expenses: | ||||||||
Research and development, net | 32 | 32.3 | ||||||
Sales and marketing | 35 | 35.9 | ||||||
General and administrative | 10.2 | 10.4 | ||||||
Total operating expenses | 77.2 | 78.6 | ||||||
Operating loss | 6.6 | 9.3 | ||||||
Financing income, net | 1.3 | 0.2 | ||||||
Loss before income tax expense | 5.3 | 9.1 | ||||||
tax expense | 1.6 | 1.3 | ||||||
Net loss | 6.9 | 10.3 |
B. | Liquidity and Capital Resources |
C. | Research and Development, Patents and Licenses |
• | Local Manufacturing Obligation. We must manufacture the products developed with these grants in Israel. We may manufacture the products outside Israel only if we receive prior approval from the IIA (such approval is not required for the transfer of up to 10% of the manufacturing capacity in the aggregate, in which case a notice must be provided to the IIA and not objected to by the IIA within 30 days of such notice). |
• | Know-How Transfer Limitation. We have certain limitations on our ability to transfer know-how funded by the IIA. Approval of any transfer of IIA funded know-how to another Israeli company will be granted only if the recipient abides by the provisions of the Innovation Law and related regulations. Transfer of IIA funded know-how outside of Israel requires prior approval of the IIA and may be subject to payments to the IIA. |
• | Change of Control. We must notify the IIA in respect of any change in the ownership of our shares. In respect of any non-Israeli citizen, resident or entity that, among other things, (i) becomes a holder of 5% or more of our share capital or voting rights, (ii) is entitled to appoint one or more of our directors or our chief executive officer or (iii) serves as one of our directors or as our chief executive officer (including holders of 25% or more of the voting power, equity or the right to nominate directors in such direct holder, if applicable) are required to obtain an undertaking to comply with the rules and regulations applicable to the grant programs of the IIA. |
D. | Trend Information |
E. | Critical Accounting Estimates |
Year Ended December 31, | ||||||||
2018 | 2019 | |||||||
Revenues: | ||||||||
Products | 58.6 | % | 61.3 | % | ||||
Services | 41.4 | 38.7 | ||||||
Total revenues | 100.0 | 100.0 | ||||||
Cost of revenues: | ||||||||
Products | 20.9 | 20.6 | ||||||
Services | 9.7 | 10.1 | ||||||
Total cost of revenues | 30.6 | 30.7 | ||||||
Gross profit | 69.4 | 69.3 | ||||||
Operating expenses: | ||||||||
Research and development, net | 26.5 | 28.6 | ||||||
Sales and marketing | 42.6 | 42.8 | ||||||
General and administrative | 10.9 | 6.1 | ||||||
Total operating expenses | 80.0 | 77.5 | ||||||
Operating loss | 10.6 | 8.2 | ||||||
Financing income, net | 2.3 | 1.8 | ||||||
Loss before income tax expense | 8.3 | 6.4 | ||||||
tax expense | 2.6 | 1.5 | ||||||
Net loss | 10.9 | % | 7.9 | % |
Payments due by period | ||||||||||||||||
Contractual Obligations | Total | Less than 1 year | 1–3 years | Over 3 years | ||||||||||||
(in thousands of U.S. dollars) | ||||||||||||||||
Purchase obligations | $ | 12,303 | $ | 12,303 | $ | $ | ||||||||||
Operating leases - offices(1) | $ | 6,425 | $ | 2,886 | $ | 3,442 | 97 | |||||||||
Operating leases - vehicles | 771 | 419 | 352 | |||||||||||||
Uncertain tax position (ASC-740) | 243 | |||||||||||||||
Total | $ | 19,742 | $ | 15,608 | $ | 3,794 | $ | 97 |
A. | Directors and Senior Management |
Name | Age | Position | |||
Directors | |||||
Yigal Jacoby(5) | Chairman of the Board | ||||
Manuel Echanove(5) | Director | ||||
Director | |||||
53 | Director | ||||
Steven D. Levy (1)(2)(4)(5) | Director | ||||
Miron (Ronnie) Kenneth (1)(2)(5) | Director | ||||
Nadav Zohar (5) | Director | ||||
Executive Officers | |||||
Erez Antebi | Chief Executive Officer and President | ||||
Ziv Leitman | Chief Financial Officer | ||||
Rael Kolevsohn | Vice President, Legal Affairs, General Counsel and Company Secretary | ||||
Keren Rubanenko | Senior Vice President, | ||||
Vered Zur | Vice President, Marketing | ||||
Mark Shteiman | Senior Vice President Allot Smart Business Unit | ||||
Aharon Mullokandov | 39 | Vice President, |
Noam Lila | 46 | Senior Vice President, Customer Success and Operations | |||
_____________ | |||||
(1) | Member of our compensation and nomination committee. | ||||
(2) | Member of our audit committee. | ||||
(3) | Lead independent director. | ||||
(4) | Outside director. | ||||
(5) | Independent director under the rules of |
B. | Compensation of Officers and Directors |
Name and Principal Position (1) | Salary ($) | Bonus and Commision ($) (2) | Equity-Based Compensation ($) (3) | All Other Compensation ($) (4) | Total ($) | |||||||||||||||
Erez Antebi, President and Chief Executive Officer | 270,102 | 150,151 | 294,677 | 84,187 | 799,117 | |||||||||||||||
Ran Fridman, Executive Vice President Global Sales | 255,874 | 186,580 | 111,128 | 106,105 | 659,688 | |||||||||||||||
Alberto Sessa, Former Chief Financial Officer | 226,647 | 41,439 | 200,289 | 175,500 | 643,825 | |||||||||||||||
Nir Pery, Vice President R&D | 203,180 | 38,783 | 118,893 | 62,194 | 423,050 | |||||||||||||||
Keren Rubanenko, Vice President Customer Success | 202,099 | 40,400 | 66,547 | 68,822 | 377,868 |
Name and Principal Position (1) | Salary ($) | Bonus and Commission ($) (2) | Equity-Based Compensation ($) (3) | All Other Compensation ($) (4) | Total ($) | |||||||||||||||
Erez Antebi, President and Chief Executive Officer | 297,226 | 124,707 | 373,296 | 76,902 | 872,131 | |||||||||||||||
Ziv Leitman, Chief Financial Officer | 297,226 | 68,114 | 243,950 | 98,659 | 707,949 | |||||||||||||||
Keren Rubanenko, Senior Vice President, Cyber Security Business Unit | 260,073 | 58,857 | 284,447 | 71,016 | 674,393 | |||||||||||||||
Yael Villa, Former Senior Vice President, Cyber Security Business Unit | 278,649 | 59,877 | 195,333 | 93,515 | 627,374 | |||||||||||||||
Rael Kolevsohn, Vice President, Legal Affairs, General Counsel and Company Secretary | 242,425 | 56,194 | 103,530 | 68,020 | 470,169 |
(1) | Unless otherwise indicated herein, all Covered Executives are full-time employees of Allot. |
(2) | Amounts reported in this column represent annual incentive bonuses and commissions granted to the Covered Executives based on performance-metric based formulas set forth in their respective employment agreements. |
(3) | Amounts reported in this column represent the grant date fair value computed in accordance with accounting guidance for |
(4) | Amounts reported in this column include personal benefits and perquisites, including those mandated by applicable law. Such benefits and perquisites may include, to the extent applicable to the respective Covered Executive, payments, contributions and/or allocations for savings funds |
• | Objectives: To attract, motivate and retain highly experienced personnel who will provide leadership for Allot’s success and enhance shareholder value, and to promote for each executive officer an opportunity to advance in a growing organization. |
• | Compensation instruments: Includes base salary; benefits and perquisites; cash bonuses; equity-based awards; and retirement and termination arrangements. |
• | Ratio between fixed and variable compensation: Allot aims to balance the mix of fixed compensation (base salary, benefits and perquisites) and variable compensation (cash bonuses and equity-based awards) pursuant to the ranges set forth in the compensation policy in order, among other things, to tie the compensation of each executive officer to Allot’s financial and strategic achievements and enhance the alignment between the executive officer’s interests and the long-term interests of Allot and its shareholders. |
• | Internal compensation ratio: Allot will target a ratio between overall compensation of the executive officers and the average and median salary of the other employees of Allot, as set forth in the compensation policy, to ensure that levels of executive compensation will not have a negative impact on work relations in Allot. |
• | Base salary, benefits and perquisites: The compensation policy provides guidelines and criteria for determining base salary, benefits and perquisites for executive officers. |
• | Cash bonuses: Allot’s policy is to allow annual cash bonuses, which may be awarded to executive officers pursuant to the guidelines and criteria, including maximum bonus opportunities, set forth in the compensation policy. |
• | “Clawback”: In the event of an accounting restatement, Allot shall be entitled to recover from current executive officers bonus compensation in the amount of the excess over what would have been paid under the accounting restatement, with a three-year look-back. |
• | Equity-based awards: Allot’s policy is to provide equity-based awards in the form of share options, restricted share units and other forms of equity, which may be awarded to executive officers pursuant to the guidelines and criteria, including minimum vesting period, set forth in the compensation policy. |
• | Retirement and termination: The compensation policy provides guidelines and criteria for determining retirement and termination arrangements of executive officers, including limitations thereon. |
• | Exculpation, indemnification and insurance: The compensation policy provides guidelines and criteria for providing directors and executive officers with exculpation, indemnification and insurance. |
• | Directors: The compensation policy provides guidelines for the compensation of our directors in accordance with applicable regulations promulgated under the Companies Law, and for equity-based awards that may be granted to directors pursuant to the guidelines and criteria, including minimum vesting period, set forth in the compensation policy. |
• | Applicability: The compensation policy applies to all compensation agreements and arrangements approved after the date on which the compensation policy is approved by the shareholders. |
• | Review: The compensation and nominating committee and the Board of Directors of Allot shall review and reassess the adequacy of the Compensation Policy from time to time, as required by the Companies Law. |
C. | Board Practices |
D. | Employees* |
December 31, | December 31, | |||||||||||||||||||||||
Department | 2017 | 2018 | 2019 | 2019 | 2020 | 2021 | ||||||||||||||||||
Manufacturing and operations | 13 | 13 | 13 | 13 | 15 | 13 | ||||||||||||||||||
Research and development | 163 | 200 | 233 | 233 | 281 | 331 | ||||||||||||||||||
Sales, marketing, service and support | 250 | 261 | 289 | 289 | 314 | 324 | ||||||||||||||||||
Management and administration | 51 | 50 | 59 | 59 | 66 | 73 | ||||||||||||||||||
Total | 477 | 524 | 594 | 594 | 676 | 741 |
December 31, | ||||||||||||
Department | 2017 | 2018 | 2019 | |||||||||
Full time Employee | 404 | 422 | 478 | |||||||||
Part time Employee | 26 | 27 | 29 | |||||||||
Permanent Contractor | 36 | 41 | 37 | |||||||||
Subcontractor | 11 | 34 | 50 | |||||||||
Total | 477 | 524 | 594 |
December 31, | ||||||||||||
Department | 2019 | 2020 | 2021 | |||||||||
Full time Employee | 478 | 504 | 508 | |||||||||
Part time Employee | 29 | 30 | 38 | |||||||||
Permanent Contractor | 37 | 32 | 33 | |||||||||
Subcontractor | 50 | 110 | 162 | |||||||||
Total | 594 | 676 | 741 |
E. | Share Ownership |
Name of Beneficial Owner | Number of Shares Beneficially Held(1) | Percent of Class | ||||||
Directors | ||||||||
Efrat Makov | * | * | ||||||
Itzhak Danziger | * | * | ||||||
Manuel Echanove | * | * | ||||||
Nadav Zohar | * | * | ||||||
Steven D. Levy | * | * | ||||||
Yigal Jacoby | 430,681 | 1.2 | % | |||||
Miron Kenneth | * | * | ||||||
Nurit Benjamini (2) | * | * | ||||||
Executive Officers | * | * | ||||||
Erez Antebi | * | * | ||||||
Ziv Leitman | * | * | ||||||
Ronit Weinstein (2) | * | * | ||||||
Rael Kolevsohn | * | * | ||||||
Keren Rubanenko | * | * | ||||||
Vered Zur | * | * | ||||||
Mark Shteiman | * | * | ||||||
Yael Villa (2) | * | * | ||||||
Aharon Mullokandov | * | * | ||||||
Noam Lila | * | * | ||||||
Ronen Priel (2) | * | * | ||||||
Pini Gvili (2) | * | * | ||||||
Ran Fridman (2) | * | * | ||||||
Hagay Katz (2) | * | * | ||||||
Assaf Eyal | * | * | ||||||
All directors and executive officers as a group | 1,232,059 | 3.4 | % |
Name of Beneficial Owner | Number of Shares Beneficially Held(1) | Percent of Class | ||||||
Directors | ||||||||
Nurit Benjamini | * | * | ||||||
Itzhak Danziger | * | * | ||||||
Manuel Echanove | * | * | ||||||
Nadav Zohar | * | * | ||||||
Steven D. Levy | * | * | ||||||
Yigal Jacoby | 462,681 | 1.33 | % | |||||
Miron Kenneth | * | * | ||||||
Executive Officers | ||||||||
Erez Antebi | * | * | ||||||
Ziv Leitman | * | * | ||||||
Nir Pery | * | * | ||||||
Ronit Weinstein | * | * | ||||||
Ronen Priel | ||||||||
Rael Kolevsohn | * | * | ||||||
Pini Gvili | * | * | ||||||
Keren Rubanenko | ||||||||
Ran Fridman | * | * | ||||||
Vered Zur | * | * | ||||||
Hagay Katz | * | * | ||||||
Mark Shteiman | * | * | ||||||
All directors and executive officers as a group | 1,029,443 | 2.97 | % |
(1) | As used in this table, “beneficial ownership” is determined in accordance with the rules of the SEC and consists of either or both voting or investment power with respect to securities. For purposes of this table, a person is deemed to be the beneficial owner of securities that can be acquired within 60 days from |
(2) | Former Director or Executive Officer, stepped down during the 2021 Fiscal Year. |
Plan | Shares reserved | Option and RSU grants, net (*) | Outstanding options and RSUs | Options outstanding exercise price | Date of expiration | Options exercisable | |||||||||||||||
2016 Incentive Compensation Plan | 577,002 | 8,029,483 | 3,058,083 | 0.029-27.58 | 03/01/2020-09/06/2025 | 1,170,265 |
Plan | Shares reserved | Option and RSU grants, net (*) | Outstanding options and RSUs | Options outstanding exercise price | Date of expiration | Options exercisable | |||||||||||||||
2016 Incentive Compensation Plan | 1,184,746 | 8,584,273 | 2,576,725 | 0.031-27.58 | 7/24/2023-09/06/2025 | 643,986 |
(*) | “Option and RSU grants, net” is calculated by subtracting options and RSUs expired or forfeited. |
A. | Major Shareholders |
Ordinary Shares Beneficially Owned(1) | Percentage of Ordinary Shares Beneficially Owned | |||||||
Lynrock Lake Partners LLC (2) | 6,200,731 | 17.87 | % | |||||
Outerbridge Master Fund LP (3) | 2,940,802 | 8.47 | % | |||||
Clal Insurance Enterprises Holdings Ltd. (4) | 2,550,531 | 7.35 | % | |||||
Migdal Insurance & Financial Holdings Ltd. (5) | 2,323,473 | 6.70 | % | |||||
Renaissance Technologies LLC (6) | 1,949,869 | 5.61 | % | |||||
Sphera Funds Management Ltd. (7) | 1,808,196 | 5.21 | % |
Ordinary Shares Beneficially Owned(1) | Percentage of Ordinary Shares Beneficially Owned | |||||||
Lynrock Lake Partners LLC (2) | 7,266,666 | 19.9 | % | |||||
Clal Insurance Enterprises Holdings Ltd. (3) | 2,749,041 | 7.5 | % | |||||
Migdal Insurance & Financial Holdings Ltd. (4) | 2,653,431 | 7.3 | % | |||||
Outerbridge Capital Management, LLC (5) | 3,756,991 | 10.3 | % |
(1) | As used in this table, “beneficial ownership” means the sole or shared power to vote or direct the voting or to dispose or direct the disposition of any security. For purposes of this table, a person is deemed to be the beneficial owner of securities that can be acquired within 60 days from February 20, 2022. |
(2) | Based on a Schedule 13G/A filed on February 14, shares. Lynrock Lake LP (the |
(3) | Based on a Schedule 13G/A filed on February |
(4) | Based on a Schedule 13G filed on February 2, 2022, Migdal Insurance & Financial Holdings Ltd. (“Migdal”) had voting power and dispositive power over these ordinary shares. |
(5) | Based on a Schedule 13D/A filed on February 11, 2022, Outerbridge Capital Management, LLC (“Outerbridge”) had shared voting and dispositive power over 3,756,991 ordinary shares. The address of Outerbridge |
Record Holders |
C. | Related Party Transactions |
D. | Interests of Experts and Counsel |
A. | Consolidated Financial Statements and Other Financial Information. |
B. | Significant Changes |
A. | Share Capital |
B. | Memorandum and Articles of Association |
C. | Material Contracts |
Material Contract | Location | |
Non-Stabilized Lease Agreement | “ITEM 4: Information on Allot – D. Property, Plant and Equipment” |
D. | Exchange Controls |
E. | Taxation |
F. | Dividends and Paying Agents |
G. | Statement by Experts |
H. | Documents on Display |
I. | Subsidiary Information |
A. | Material Modifications to the Rights of Security Holders |
B. | Use of Proceeds |
(a) | Disclosure Controls and |
(b) | Management’s Annual Report on Internal Control over Financial |
(c) | Attestation Report of the Registered Independent Public Accounting Firm. Our independent auditors, Kost Forer Gabbay & Kasierer, a member of Ernst & Young Global, have audited the consolidated financial statements included in this annual report on Form 20-F, and as part of its audit, have issued an unqualified audit report on the effectiveness of our internal control over financial |
(d) | Changes in Internal Control over Financial |
Year ended December, 31, | Year ended December, 31, | |||||||||||||||
2018 | 2019 | 2020 | 2021 | |||||||||||||
(in thousands of U.S. dollars) | (in thousands of U.S. dollars) | |||||||||||||||
Audit Fees(1) | $ | 275 | $ | 280 | $ | 285 | $ | 416 | ||||||||
Audit-Related Fees(2) | 10 | 15 | 20 | - | ||||||||||||
Tax Fees(3) | 104 | 133 | 88 | 39 | ||||||||||||
Other | 50 | |||||||||||||||
Total | $ | 389 | $ | 428 | $ | 393 | $ | 505 |
(1) | “Audit fees” include fees for services performed by our independent public accounting firm in connection with our annual audit for |
(2) | “Audit-Related fees” relate to assurance and associated services that are traditionally performed by the independent auditor, including: accounting consultation and consultation concerning financial accounting, reporting standards and due diligence investigations. |
(3) | “Tax fees” include fees for professional services rendered by our independent registered public accounting firm for tax compliance, transfer pricing and tax advice on actual or contemplated transactions. |
Allot Ltd | |||
By: | /s/ Erez Antebi | ||
Erez Antebi | |||
Chief Executive Officer and President | |||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||
___________________ | |||
(1) | Previously filed with the | ||
(2) | Previously included in Exhibit 99.3 to the report of foreign private issuer on Form 6-K furnished to the | ||
(3) | Previously filed with the | ||
(4) | Previously filed with the | ||
(5) | Previously included | ||
(6) | Previously filed with the | ||
(7) | Previously filed with the | ||
(8) | Previously filed with the | ||
(9) | Previously included in Exhibit 99.1 to the report of foreign private issuer on Form 6-K furnished to the | ||
(10) | Previously included in Exhibit 99.2 to the report of foreign private issuer on Form 6-K furnished to the | ||
(11) | Previously filed with the |
Page | |
Reports of Independent Registered Public Accounting Firm (PCAOB ID No. 1281) | F - 2 - F - 4 |
F - 5 - F - 6 | |
F - 7 | |
F - 8 | |
F - 9 – F - 10 | |
F - |
Kost Forer Gabbay & Kasierer 144 Menahem Begin Road, Building A Tel-Aviv 6492102, Israel | Tel: +972-3-6232525 Fax: +972-3-5622555 ey.com |
Kost Forer Gabbay & Kasierer 144 Menahem Begin Road, Building A Tel-Aviv 6492102, Israel | Tel: +972-3-6232525 Fax: +972-3-5622555 ey.com |
Revenue Recognition | ||
Description of the Matter | As described in Note 2.M to the consolidated financial statements, the Company derives revenues from sales of products, related maintenance and support services and professional services. The Company’s contracts with customers often contain multiple performance obligations which are accounted for separately when they are distinct. The Company allocates the transaction price to the distinct performance obligations on a relative standalone selling price basis and recognizes revenue when control is transferred. Product revenues are recognized at the point in time when the product has been delivered. The Company recognizes revenues from maintenance and support services ratably over the term of the applicable maintenance and support agreement. Revenues from professional services are recognized, when the services are provided or once the service term has expired. Auditing the Company’s revenue recognition was complex due to the subjectivity of the assumptions that were used in developing the stand alone selling price of distinct performance obligations. |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated design and tested the operating effectiveness of internal controls related to the determination of the stand-alone selling prices. To test management’s determination of stand-alone selling price for each performance obligation, we performed procedures to evaluate the methodology applied, including reading sample of executed contracts to understand and evaluate management’s identification of significant terms, tested the accuracy of the underlying data and calculations and the application of that methodology to the sampled contracts. We also tested the mathematical accuracy of management’s calculations of revenue and the associated timing of revenue recognized in the financial statements. We used analytical tools in order to analyze, investigate and validate a full correlation between revenues, trade receivables and cash. Finally, we assessed the appropriateness of the related disclosures in the consolidated financial statements. |
Kost Forer Gabbay & Kasierer 144 Menahem Begin Road, Building A Tel-Aviv 6492102, Israel | Tel: +972-3-6232525 Fax: +972-3-5622555 ey.com |
F - 4 |
December 31, | ||||||||
2019 | 2018 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 16,930 | $ | 16,336 | ||||
Restricted deposits | 23,183 | 465 | ||||||
Short-term bank deposits | 5,557 | 22,543 | ||||||
Available-for-sale marketable securities | 61,012 | 64,290 | ||||||
Trade receivables (net of allowance for doubtful accounts of $ 1,867 and $ 1,415 at December 31, 2019 and 2018, respectively) | 29,008 | 26,093 | ||||||
Other receivables and prepaid expenses | 6,528 | 3,647 | ||||||
Inventories | 10,668 | 11,345 | ||||||
Total current assets | 152,886 | 144,719 | ||||||
NON-CURRENT ASSETS: | ||||||||
Restricted deposits | 10,913 | 257 | ||||||
Severance pay fund | 387 | 345 | ||||||
Operating lease right-of-use assets | 6,368 | - | ||||||
Deferred taxes | 517 | 281 | ||||||
Other assets | 926 | 600 | ||||||
Property and equipment | 8,135 | 6,249 | ||||||
Intangible assets, net | 3,354 | 4,961 | ||||||
Goodwill | 31,683 | 32,432 | ||||||
Total non-current assets | 62,283 | 45,125 | ||||||
Total assets | $ | 215,169 | $ | 189,844 |
December 31, | ||||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 11,717 | $ | 23,599 | ||||
Restricted deposits | 1,480 | 1,200 | ||||||
Short-term bank deposits | 60,720 | 47,225 | ||||||
Available-for-sale marketable securities | 11,531 | 27,178 | ||||||
Trade receivables, net (net of allowance for credit losses of $2,398 and $2,309 on December 31, 2021 and 2020, respectively) | 30,829 | 20,685 | ||||||
Other receivables and prepaid expenses | 8,490 | 14,205 | ||||||
Inventories | 11,092 | 12,586 | ||||||
Total current assets | 135,859 | 146,678 | ||||||
NON-CURRENT ASSETS: | ||||||||
Long-term bank deposits | 215 | 215 | ||||||
Severance pay fund | 407 | 434 | ||||||
Operating lease right-of-use assets | 8,513 | 4,458 | ||||||
Trade receivables, net | 6,643 | 0 | ||||||
Deferred taxes | 0 | 420 | ||||||
Other assets | 1,639 | 2,975 | ||||||
Property and equipment, net | 15,000 | 11,993 | ||||||
Intangible assets, net | 3,455 | 2,744 | ||||||
Goodwill | 31,683 | 31,683 | ||||||
Total non- current assets | 67,555 | 54,922 | ||||||
Total assets | $ | 203,414 | $ | 201,600 |
F - 5 |
December 31, | ||||||||
2021 | 2020 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade payables | $ | 3,940 | $ | 2,092 | ||||
Employees and payroll accruals | 14,636 | 14,138 | ||||||
Deferred revenues | 22,138 | 26,658 | ||||||
Short-term operating lease liabilities | 2,785 | 2,813 | ||||||
Other payables and accrued expenses | 11,614 | 13,161 | ||||||
Total current liabilities | 55,113 | 58,862 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Deferred revenues | 15,942 | 9,782 | ||||||
Long-term operating lease liabilities | 5,467 | 1,835 | ||||||
Accrued severance pay | 884 | 969 | ||||||
Total long-term liabilities | 22,293 | 12,586 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES | 0 | 0 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital - | ||||||||
Ordinary shares of NIS 0.1 par value - Authorized: 200,000,000 shares at December 31, 2021 and 2020; Issued: 37,307,480 and 36,198,638 shares at December 31, 2021 and 2020, respectively; Outstanding: 36,491,480 and 35,382,638 shares at December 31, 2021 and 2020, respectively | 929 | 896 | ||||||
Additional paid-in capital | 293,803 | 283,065 | ||||||
Treasury share at cost - 816,000 shares at December 31, 2021 and 2020. | (3,998 | ) | (3,998 | ) | ||||
Accumulated other comprehensive income | 271 | 146 | ||||||
Accumulated deficit | (164,997 | ) | (149,957 | ) | ||||
Total shareholders' equity | 126,008 | 130,152 | ||||||
Total liabilities and shareholders' equity | $ | 203,414 | $ | 201,600 |
December 31, | ||||||||
2019 | 2018 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade payables | $ | 11,676 | $ | 7,813 | ||||
Employees and payroll accruals | 12,041 | 7,357 | ||||||
Deferred revenues | 36,360 | 13,855 | ||||||
Short-term operating lease liabilities | 3,151 | - | ||||||
Other payables and accrued expenses | 10,214 | 13,695 | ||||||
Total current liabilities | 73,442 | 42,720 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Deferred revenues | 5,262 | 4,247 | ||||||
Long-term operating lease liabilities | 3,820 | - | ||||||
Accrued severance pay | 794 | 806 | ||||||
Other long-term liability | - | 6,168 | ||||||
Total long-term liabilities | 9,876 | 11,221 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital - | ||||||||
Ordinary shares of NIS 0.1 par value - Authorized: 200,000,000 shares at December 31, 2019 and 2018; Issued: 35,336,728 and 34,712,261 shares at December 31, 2019 and 2018, respectively; Outstanding: 34,520,728 and 33,896,261 shares at December 31, 2019 and 2018, respectively | 871 | 853 | ||||||
Additional paid-in capital | 276,112 | 271,765 | ||||||
Treasury stock at cost - 816,000 shares at December 31, 2019 and 2018. | (3,998 | ) | (3,998 | ) | ||||
Accumulated other comprehensive income (loss) | (525 | ) | (767 | ) | ||||
Accumulated deficit | (140,609 | ) | (131,950 | ) | ||||
Total shareholders' equity | 131,851 | 135,903 | ||||||
Total liabilities and shareholders' equity | $ | 215,169 | $ | 189,844 |
F - 6 |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Revenues: | ||||||||||||
Products | $ | 67,440 | $ | 56,169 | $ | 48,727 | ||||||
Services | 42,660 | 39,668 | 33,265 | |||||||||
Total revenues | 110,100 | 95,837 | 81,992 | |||||||||
Cost of revenues: | ||||||||||||
Products | 22,743 | 20,061 | 19,258 | |||||||||
Services | 11,091 | 9,288 | 9,272 | |||||||||
Total cost of revenues | 33,834 | 29,349 | 28,530 | |||||||||
Gross profit | 76,266 | 66,488 | 53,462 | |||||||||
Operating expenses: | ||||||||||||
Research and development (net of grant participations of $ 378, $ 374 and $ 392 for the years ended December 31, 2019, 2018 and 2017, respectively) | 31,461 | 25,418 | 21,852 | |||||||||
Sales and marketing | 47,105 | 40,849 | 38,316 | |||||||||
General and administrative | 6,678 | 10,416 | 10,696 | |||||||||
Total operating expenses | 85,244 | 76,683 | 70,864 | |||||||||
Operating loss | (8,978 | ) | (10,195 | ) | (17,402 | ) | ||||||
Financial income, net | 1,960 | 2,208 | 894 | |||||||||
Loss before income tax expense | (7,018 | ) | (7,987 | ) | (16,508 | ) | ||||||
Income tax expense | 1,641 | 2,428 | 1,564 | |||||||||
Net loss | $ | (8,659 | ) | $ | (10,415 | ) | $ | (18,072 | ) | |||
Unrealized gain (loss) on available-for-sale marketable securities | 670 | (226 | ) | (35 | ) | |||||||
Unrealized gain (loss) on foreign currency cash flow hedges transactions | (332 | ) | (1,480 | ) | 1,016 | |||||||
Net amount reclassified to earnings | (96 | ) | 903 | (796 | ) | |||||||
Total comprehensive loss from hedge transactions | (428 | ) | (577 | ) | 220 | |||||||
Total comprehensive loss | $ | (8,417 | ) | $ | (11,218 | ) | $ | (17,887 | ) | |||
Net loss per share: Basic and diluted | $ | (0.25 | ) | $ | (0.31 | ) | $ | (0.54 | ) | |||
Weighted average number of shares used in per share computations of net loss: | ||||||||||||
Basic and diluted | 34,250,582 | 33,710,507 | 33,253,158 |
Year ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Revenues: | ||||||||||||
Products | $ | 88,229 | $ | 92,524 | $ | 67,440 | ||||||
Services | 57,371 | 43,398 | 42,660 | |||||||||
Total revenues | 145,600 | 135,922 | 110,100 | |||||||||
Cost of revenues: | ||||||||||||
Products | 31,603 | 28,524 | 22,743 | |||||||||
Services | 12,950 | 11,558 | 11,091 | |||||||||
Total cost of revenues | 44,553 | 40,082 | 33,834 | |||||||||
Gross profit | 101,047 | 95,840 | 76,266 | |||||||||
Operating expenses: | ||||||||||||
Research and development (net of grant participations of $ 167, $ 339 and $ 378 for the years ended December 31, 2021, 2020 and 2019, respectively) | 47,093 | 43,447 | 31,461 | |||||||||
Sales and marketing | 52,337 | 47,528 | 47,105 | |||||||||
General and administrative | 15,145 | 13,894 | 6,678 | |||||||||
Total operating expenses | 114,575 | 104,869 | 85,244 | |||||||||
Operating loss | (13,528 | ) | (9,029 | ) | (8,978 | ) | ||||||
Financial income, net | 339 | 1,857 | 1,960 | |||||||||
Loss before income tax expense | (13,189 | ) | (7,172 | ) | (7,018 | ) | ||||||
Income tax expense | 1,851 | 2,176 | 1,641 | |||||||||
Net loss | $ | (15,040 | ) | $ | (9,348 | ) | $ | (8,659 | ) | |||
Unrealized gain (loss) on available-for-sale marketable securities | (359 | ) | 191 | 666 | ||||||||
Net amount reclassified to earnings from available-for-sale marketable securities | (15 | ) | (40 | ) | 4 | |||||||
Total comprehensive gain (loss) from available-for-sale marketable securities | (374 | ) | 151 | 670 | ||||||||
Unrealized gain (loss) on foreign currency cash flow hedges transactions | 1,269 | 723 | (332 | ) | ||||||||
Net amount reclassified to earnings from hedging transactions | (770 | ) | (203 | ) | (96 | ) | ||||||
Total comprehensive gain (loss) from hedge transactions | 499 | 520 | (428 | ) | ||||||||
Total comprehensive loss | $ | (14,915 | ) | $ | (8,677 | ) | $ | (8,417 | ) | |||
Net loss per share: | ||||||||||||
Basic and diluted | $ | (0.42 | ) | $ | (0.27 | ) | $ | (0.25 | ) | |||
Weighted average number of shares used in per share computations of net loss: | ||||||||||||
Basic and diluted | 36,050,540 | 35,007,201 | 34,250,582 |
F - 7 |
Ordinary shares | Additional paid-in capital | Treasury stock | Accumulated other comprehensive income (loss) | Accumulated deficit | Total shareholders' equity | |||||||||||||||||||||||
Outstanding shares | Amount | |||||||||||||||||||||||||||
Balance at January 1, 2017 | 33,057,719 | 843 | 264,782 | (3,998 | ) | (149 | ) | (104,175 | ) | 157,303 | ||||||||||||||||||
Exercise of stock options | 425,543 | 8 | 354 | - | - | - | 362 | |||||||||||||||||||||
Stock-based compensation | - | - | 3,351 | - | - | - | 3,351 | |||||||||||||||||||||
Other comprehensive income | - | - | - | - | 185 | - | 185 | |||||||||||||||||||||
Net loss | - | - | - | - | - | (18,072 | ) | (18,072 | ) | |||||||||||||||||||
Balance at December 31, 2017 | 33,483,262 | 851 | 268,487 | (3,998 | ) | 36 | (122,247 | ) | 143,129 | |||||||||||||||||||
Cumulative effect of new accounting standard (See Note 1) | - | - | - | - | - | 712 | 712 | |||||||||||||||||||||
Exercise of stock options | 412,999 | 2 | 416 | - | - | - | 418 | |||||||||||||||||||||
Stock-based compensation | - | - | 2,862 | - | - | - | 2,862 | |||||||||||||||||||||
Other comprehensive income | - | - | - | - | (803 | ) | - | (803 | ) | |||||||||||||||||||
Net loss | - | - | - | - | - | (10,415 | ) | (10,415 | ) | |||||||||||||||||||
Balance at December 31, 2018 | 33,896,261 | 853 | 271,765 | (3,998 | ) | (767 | ) | (131,950 | ) | 135,903 | ||||||||||||||||||
Exercise of stock options | 624,467 | 18 | 974 | - | - | - | 992 | |||||||||||||||||||||
Stock-based compensation | - | - | 3,373 | - | - | - | 3,373 | |||||||||||||||||||||
Other comprehensive income | - | - | - | - | 242 | - | 242 | |||||||||||||||||||||
Net loss | - | - | - | - | - | (8,659 | ) | (8,659 | ) | |||||||||||||||||||
Balance at December 31, 2019 | 34,520,728 | 871 | 276,112 | (3,998 | ) | (525 | ) | (140,609 | ) | 131,851 |
Ordinary shares | Additional paid-in capital | Treasury share | Accumulated other comprehensive income (loss) | Accumulated deficit | Total shareholders' equity | |||||||||||||||||||||||
Outstanding shares | Amount | |||||||||||||||||||||||||||
Balance as of January 1, 2019 | 33,896,261 | 853 | 271,765 | (3,998 | ) | (767 | ) | (131,950 | ) | 135,903 | ||||||||||||||||||
Exercise of share options and restricted share units | 624,467 | 18 | 974 | 0 | 0 | 0 | 992 | |||||||||||||||||||||
Share-based compensation | - | 0 | 3,373 | 0 | 0 | 0 | 3,373 | |||||||||||||||||||||
Other comprehensive loss | - | 0 | 0 | 0 | 242 | 0 | 242 | |||||||||||||||||||||
Net loss | - | 0 | 0 | 0 | 0 | (8,659 | ) | (8,659 | ) | |||||||||||||||||||
Balance as of December 31, 2019 | 34,520,728 | 871 | 276,112 | (3,998 | ) | (525 | ) | (140,609 | ) | 131,851 | ||||||||||||||||||
Exercise of share options and restricted share units | 861,910 | 25 | 1,810 | 0 | 0 | 0 | 1,835 | |||||||||||||||||||||
Share-based compensation | - | 0 | 5,143 | 0 | 0 | 0 | 5,143 | |||||||||||||||||||||
Other comprehensive income | - | 0 | 0 | 0 | 671 | 0 | 671 | |||||||||||||||||||||
Net loss | - | 0 | 0 | 0 | 0 | (9,348 | ) | (9,348 | ) | |||||||||||||||||||
Balance as of December 31, 2020 | 35,382,638 | 896 | 283,065 | (3,998 | ) | 146 | (149,957 | ) | 130,152 | |||||||||||||||||||
Exercise of share options and restricted share units | 1,108,842 | 33 | 2,778 | 0 | 0 | 0 | 2,811 | |||||||||||||||||||||
Share-based compensation | - | 0 | 7,960 | 0 | 0 | 0 | 7,960 | |||||||||||||||||||||
Other comprehensive income | - | 0 | 0 | 0 | 125 | 0 | 125 | |||||||||||||||||||||
Net loss | - | 0 | 0 | 0 | 0 | (15,040 | ) | (15,040 | ) | |||||||||||||||||||
Balance as of December 31, 2021 | 36,491,480 | 929 | 293,803 | (3,998 | ) | 271 | (164,997 | ) | 126,008 |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Accumulated unrealized gain (loss) on available-for-sale marketable securities | $ | 321 | $ | (349 | ) | $ | (123 | ) | ||||
Accumulated unrealized loss on foreign currency cash flows hedge transactions gain (loss) | (846 | ) | (418 | ) | 159 | |||||||
Accumulated other comprehensive gain (loss) | $ | (525 | ) | $ | (767 | ) | $ | 36 |
F - 8 |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (8,659 | ) | $ | (10,415 | ) | $ | (18,072 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 4,359 | 3,834 | 3,668 | |||||||||
Stock-based compensation | 3,420 | 2,862 | 3,366 | |||||||||
Capital loss | - | 39 | 27 | |||||||||
Increase (decrease) in accrued severance pay, net | (54 | ) | 16 | 105 | ||||||||
Decrease in other assets | (326 | ) | 535 | 1 | ||||||||
Decrease in accrued interest and amortization of premium on available-for sale marketable securities | 343 | 804 | 913 | |||||||||
Changes in operating lease right-of-use asset | (6,368 | ) | - | - | ||||||||
Changes in operating leases liability | 6,971 | |||||||||||
Decrease (increase) in trade receivables | (2,915 | ) | (3,356 | ) | 1,421 | |||||||
Decrease (increase) in other receivables and prepaid expenses | (3,168 | ) | (1,101 | ) | 1,350 | |||||||
Increase in inventories | (253 | ) | (3,448 | ) | (662 | ) | ||||||
Decrease (increase) in long-term deferred taxes, net | (236 | ) | 20 | (34 | ) | |||||||
Increase in trade payables | 3,863 | 1,945 | 2,582 | |||||||||
Increase (decrease) in employees and payroll accruals | 4,635 | (1,178 | ) | 1,140 | ||||||||
Increase in deferred revenues | 23,520 | 3,566 | 518 | |||||||||
Increase (decrease) in other payables and accrued expenses | (9,040 | ) | 6,906 | 3,449 | ||||||||
Net cash provided by (used in) operating activities | 16,092 | 1,029 | (228 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Investment in restricted deposits | (33,374 | ) | (294 | ) | (428 | ) | ||||||
Redemption of (Investment in) short-term deposits | 16,986 | 8,500 | (1,222 | ) | ||||||||
Purchase of property and equipment | (3,708 | ) | (3,485 | ) | (2,833 | ) | ||||||
Investment in available-for sale marketable securities | (39,950 | ) | (34,777 | ) | (30,123 | ) | ||||||
Proceeds from redemption or sale of available-for sale marketable securities | 43,555 | 32,651 | 26,488 | |||||||||
Acquisition of Netonomy, net of cash | - | (3,048 | ) | - | ||||||||
Net cash used in by investing activities | (16,491 | ) | (453 | ) | (8,118 | ) |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercise of stock options | 993 | 418 | 362 | |||||||||
Net cash provided by financing activities | 993 | 418 | 362 | |||||||||
Increase (decrease) in cash and cash equivalents | 594 | 994 | (7,984 | ) | ||||||||
Cash and cash equivalents at the beginning of the year | 16,336 | 15,342 | 23,326 | |||||||||
Cash and cash equivalents at the end of the year | $ | 16,930 | $ | 16,336 | $ | 15,342 | ||||||
Supplementary cash flow information: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Taxes | $ | 473 | $ | 347 | $ | 342 | ||||||
Non cash activity: | ||||||||||||
Changes in operating lease right-of-use singed during 2019 | $ | (1,208 | ) | |||||||||
Changes in operating leases liability singed during 2019 | $ | 1,208 |
Year ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (15,040 | ) | $ | (9,348 | ) | $ | (8,659 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 5,575 | 4,312 | 4,359 | |||||||||
Share-based compensation | 8,000 | 5,198 | 3,420 | |||||||||
Capital loss | 0 | 18 | 0 | |||||||||
Increase (decrease) in accrued severance pay, net | (58 | ) | 128 | (54 | ) | |||||||
Decrease (increase) in other assets | 1,006 | (2,048 | ) | (326 | ) | |||||||
Decrease in accrued interest and amortization of premium on available-for sale marketable securities | 182 | 357 | 343 | |||||||||
Decrease (increase) in operating lease right-of-use asset | (4,055 | ) | 1,910 | (6,368 | ) | |||||||
Increase (decrease) in operating leases liability | 3,604 | (2,323 | ) | 6,971 | ||||||||
Decrease (increase) in trade receivables | (16,787 | ) | 8,323 | (2,915 | ) | |||||||
Decrease (increase) in other receivables and prepaid expenses | 4,902 | (7,272 | ) | (3,168 | ) | |||||||
Decrease (increase) in inventories | 1,494 | (1,918 | ) | (253 | ) | |||||||
Decrease (increase) in long-term deferred taxes, net | 420 | 96 | (236 | ) | ||||||||
Increase (decrease) in trade payables | 1,848 | (9,584 | ) | 3,863 | ||||||||
Increase in employees and payroll accruals | 458 | 2,047 | 4,635 | |||||||||
Increase (decrease) in deferred revenues | 1,640 | (5,182 | ) | 23,520 | ||||||||
Increase (decrease) in other payables and accrued expenses | (1,559 | ) | 3,061 | (9,040 | ) | |||||||
Net cash provided by (used in) operating activities | (8,370 | ) | (12,225 | ) | 16,092 | |||||||
Cash flows from investing activities: | ||||||||||||
Decrease (increase) in restricted deposits | (280 | ) | 32,896 | (33,374 | ) | |||||||
Redemption of (Investment in) short-term deposits | (13,495 | ) | (41,883 | ) | 16,986 | |||||||
Purchase of property and equipment | (7,642 | ) | (7,582 | ) | (3,708 | ) | ||||||
Investment in available-for sale marketable securities | 0 | (1,219 | ) | (39,950 | ) | |||||||
Proceeds from sales and maturity of available-for sale marketable securities | 15,094 | 34,847 | 43,555 | |||||||||
Net cash provided by (used in) investing activities | (6,323 | ) | 17,059 | (16,491 | ) |
F - 9 |
Year ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercise of share options | 2,811 | 1,835 | 993 | |||||||||
Net cash provided by financing activities | 2,811 | 1,835 | 993 | |||||||||
Increase (decrease) in cash and cash equivalents | (11,882 | ) | 6,669 | 594 | ||||||||
Cash and cash equivalents at the beginning of the year | 23,599 | 16,930 | 16,336 | |||||||||
Cash and cash equivalents at the end of the year | $ | 11,717 | $ | 23,599 | $ | 16,930 | ||||||
Supplementary cash flow information: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Taxes | $ | 633 | $ | 410 | $ | 473 | ||||||
Non-cash activity: | ||||||||||||
Right-of-use assets obtained in the exchange for operating lease liabilities | $ | 6,746 | $ | 1,080 | $ | 1,208 |
F - 10 |
NOTE 1:- | GENERAL |
a. | Allot Ltd. (the "Company") was incorporated in November 1996 under the laws of the State of Israel. The Company is engaged in developing, selling and marketing of leading innovative network intelligence (“Allot Smart”) and security solutions (“Allot Secure”) for mobile |
F - 1011
NOTE 1:- | GENERAL (Cont.) |
b. | Acquisition: |
F - 1112
NOTE 1:- | GENERAL (Cont.) |
Fair value | ||||
Non-current assets | $ | 4 | ||
Account Payable | (11 | ) | ||
Other Payables | (142 | ) | ||
IPR&D | 3,659 | |||
Goodwill | 121 | |||
Net assets acquired | $ | 3,631 |
Fair value | ||||
Non-current assets | $ | 4 | ||
Account Payable | (11 | ) | ||
Other Payables | (142 | ) | ||
IPR&D | 3,659 | |||
Goodwill | 121 | |||
Net assets acquired | $ | 3,631 |
F - 13
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES |
Use of estimates: |
b. | Financial statements in U.S. dollars: |
c. | Principles of consolidation: |
d. | Cash and cash equivalents: |
e. | Restricted deposits: |
F - 1314
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
f. | Short-term bank deposits: |
g. | Trade Receivable and Allowances: |
2021 | 2020 | 2019 | ||||||||||
Total allowance for credit losses – January 1 | 2,309 | 1,867 | 1,415 | |||||||||
Current-period provision for expected credit losses | 293 | 1,894 | 866 | |||||||||
Write-offs | (9 | ) | (934 | ) | (3 | ) | ||||||
Recoveries collected | (195 | ) | (518 | ) | (411 | ) | ||||||
Total allowance for credit losses – December 31 | 2,398 | 2,309 | 1,867 |
h. | Marketable securities: |
Marketable securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Managementconsist mainly of corporate bonds. The Company determines the appropriate classification of its investments in debtmarketable securities at the time of purchase and re-evaluates such determinationsdesignation at each balance sheet date.
F - 15
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
i. | Inventories: |
Property and equipment, net: |
% | ||
Lab equipment | 16 - 25 | |
Computers and peripheral equipment | 33 | |
Office furniture | 6 | |
SECaaS equipment* | 16 | |
Leasehold improvements | Over the shorter of the term of the lease or the useful life of the asset |
F - 16
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
k. | Goodwill: |
Impairment of long-lived assets, Right-of-use assets, and intangible assets subject to amortization: |
F - 17
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
Revenue recognition: |
F - 18
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
F - 1719
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
December 31, 2017 | Adjustments | January 1, 2018 | ||||||||||
(in thousands) | ||||||||||||
Deferred revenue, short term | 11,370 | (311 | ) | 11,059 | ||||||||
Deferred revenue, long term | 3,878 | (75 | ) | 3,803 | ||||||||
Trade receivables | 22,737 | 326 | 23,063 | |||||||||
Accumulated deficit | 122,247 | (712 | ) | 121,535 |
Amounts under Topic 605 | Impact of Adoption | As Reported | ||||||||||
(in thousands) | ||||||||||||
Consolidated Balance Sheet | ||||||||||||
Deferred revenue, short term | 14,152 | (297 | ) | 13,855 | ||||||||
Deferred revenue, long term | 4,264 | (17 | ) | 4,247 | ||||||||
Trade receivables | 25,603 | 490 | 26,093 | |||||||||
Accumulated deficit | 132,754 | (804 | ) | 131,950 |
n. | Cost of revenues: |
Research and development costs: |
p. | Severance pay: |
F - 20
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
q. | Accounting for share-based compensation: |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Cost of revenues | $ | 264 | $ | 316 | $ | 362 | ||||||
Research and development | 847 | 678 | 648 | |||||||||
Sales and marketing | 1,257 | 928 | 1,166 | |||||||||
General and administrative | 1,052 | 940 | 1,190 | |||||||||
Total stock-based compensation expense | $ | 3,420 | $ | 2,862 | $ | 3,366 |
Year ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Cost of revenues | $ | 581 | $ | 355 | $ | 264 | ||||||
Research and development | 2,499 | 1,368 | 847 | |||||||||
Sales and marketing | 3,212 | 2,145 | 1,257 | |||||||||
General and administrative | 1,708 | 1,330 | 1,052 | |||||||||
Total share-based compensation expense | $ | 8,000 | $ | 5,198 | $ | 3,420 |
F - 21
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
The Company selected the binomial option pricing model as the most appropriate fair value method for its stock-based compensationshare options awards with the following assumptions for the years ended December 31, 2018 and 2017:
Year ended December 31, | ||||||||
2018 | 2017 | |||||||
Suboptimal exercise multiple | 2.9-3.5 | 2.9-3.5 | ||||||
Risk free interest rate | 2.09%-3.05% | 0.80%-2.20% | ||||||
Volatility | 26%-47% | 27%-49% | ||||||
Dividend yield | 0% | 0% |
Year ended December 31, | ||||
2018 | ||||
Suboptimal exercise multiple | 2.9-3.5 | |||
Risk free interest rate | 2.09%-3.05% | |||
Volatility | 26%-47% | |||
Dividend yield | 0 |
r. | Treasury share: |
s. | Concentration of credit risks: |
F - 22
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
t. | Government grants: |
F - 23
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
u. | Income taxes: |
v. | Basic and diluted net income (loss) per share: |
w. | Comprehensive loss: |
F - 24
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
Year ended December 31, 2019 | ||||||||||||
Unrealized gain (losses) on marketable securities | Unrealized gains (losses) on cash flow hedges | Total | ||||||||||
Balance as of December 31, 2018 | $ | (349 | ) | $ | (418 | ) | $ | (767 | ) | |||
Changes in other comprehensive income (loss) before reclassifications | 666 | (332 | ) | 334 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to: | ||||||||||||
Cost of revenues | - | (7 | ) | (7 | ) | |||||||
Operating expenses | - | (89 | ) | (89 | ) | |||||||
Financial income, net | 4 | - | 4 | |||||||||
Net current-period other comprehensive income (loss) | 670 | (428 | ) | 242 | ||||||||
Balance as of December 31, 2019 | $ | 321 | $ | (846 | ) | $ | (525 | ) |
Year ended December 31, 2021 | ||||||||||||
Unrealized gain (losses) on marketable securities | Unrealized gains (losses) on cash flow hedges | Total | ||||||||||
Balance as of December 31, 2020 | $ | 472 | $ | (326 | ) | $ | 146 | |||||
Changes in other comprehensive income (loss) before reclassifications | (359 | ) | 1,269 | 910 | ||||||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||||||||||
Cost of revenues | 0 | (146 | ) | (146 | ) | |||||||
Operating expenses | 0 | (624 | ) | (624 | ) | |||||||
Financial income, net | (15 | ) | 0 | (15 | ) | |||||||
Net current-period other comprehensive income (loss) | (374 | ) | 499 | 125 | ||||||||
Balance as of December 31, 2021 | $ | 98 | $ | 173 | $ | 271 |
x. | Fair value of financial instruments: |
Level 1 - | Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. |
Level 2 - | Include other inputs that are directly or indirectly observable in the marketplace, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions, or other inputs that are observable (model-derived valuations in which significant inputs are observable), or can be derived principally from or corroborated by observable market data; and |
Level 3 - | Unobservable inputs which are supported by little or no market activity. |
F - 25
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
y. | Derivatives and hedging: |
F - 26
z. | Business combinations: |
aa. | Lease: |
F - 27
NOTE 2: - | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
ab. | Warranty costs: |
ac. | Recently Issued Accounting Pronouncement Not Yet Adopted: |
NOTE 3: - | AVAILABLE-FOR-SALE MARKETABLE SECURITIES |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gain | Gross unrealized loss | Fair value | Amortized cost | Gross unrealized gain | Gross unrealized loss | Fair value | |||||||||||||||||||||||||
Available-for-sale - matures within one year: | ||||||||||||||||||||||||||||||||
Corporate debentures | 6,334 | 36 | 0 | 6,370 | 12,611 | 97 | 0 | 12,708 | ||||||||||||||||||||||||
6,334 | 36 | 0 | 6,370 | 12,611 | 97 | 0 | 12,708 | |||||||||||||||||||||||||
Available-for-sale - matures after one year through three years: | ||||||||||||||||||||||||||||||||
Governmental debentures | 176 | 0 | 0 | 176 | 379 | 3 | 0 | 382 | ||||||||||||||||||||||||
Corporate debentures | 4,920 | 67 | (2 | ) | 4,985 | 13,181 | 364 | 0 | 13,545 | |||||||||||||||||||||||
5,096 | 67 | (2 | ) | 5,161 | 13,560 | 367 | 0 | 13,927 | ||||||||||||||||||||||||
Available-for-sale - matures after three years through five years: | ||||||||||||||||||||||||||||||||
Corporate debentures | 0 | 0 | 0 | 0 | 535 | 8 | 0 | 543 | ||||||||||||||||||||||||
0 | 0 | 0 | 0 | 535 | 8 | 0 | 543 | |||||||||||||||||||||||||
$ | 11,430 | $ | 103 | $ | (2 | ) | $ | 11,531 | $ | 26,706 | $ | 472 | $ | 0 | $ | 27,178 |
F - 2628
NOTE | AVAILABLE-FOR-SALE MARKETABLE SECURITIES (Cont.) |
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gain | Gross unrealized loss | Fair value | Amortized cost | Gross unrealized gain | Gross unrealized loss | Fair value | |||||||||||||||||||||||||
Available-for-sale - matures within one year: | ||||||||||||||||||||||||||||||||
Governmental debentures | $ | 449 | $ | 1 | $ | - | $ | 450 | $ | 1,799 | $ | - | $ | (2 | ) | $ | 1,797 | |||||||||||||||
Corporate debentures | 30,928 | 79 | (8 | ) | 30,999 | 37,808 | 6 | (98 | ) | 37,716 | ||||||||||||||||||||||
31,377 | 80 | (8 | ) | 31,449 | 39,607 | 6 | (100 | ) | 39,513 | |||||||||||||||||||||||
Available-for-sale - matures after one year through three years: | ||||||||||||||||||||||||||||||||
Governmental debentures | 855 | 1 | - | 856 | 476 | - | (4 | ) | 472 | |||||||||||||||||||||||
Corporate debentures | 23,653 | 197 | (7 | ) | 23,843 | 24,455 | 4 | (253 | ) | 24,206 | ||||||||||||||||||||||
24,508 | 198 | (7 | ) | 24,699 | 24,931 | 4 | (257 | ) | 24,678 | |||||||||||||||||||||||
Available-for-sale - matures after three years through five years: | ||||||||||||||||||||||||||||||||
Corporate debentures | 4,806 | 58 | - | 4,864 | 101 | - | (2 | ) | 99 | |||||||||||||||||||||||
4,806 | 58 | - | 4,864 | 101 | - | (2 | ) | 99 | ||||||||||||||||||||||||
$ | 60,691 | $ | 336 | $ | (15 | ) | $ | 61,012 | $ | 64,639 | $ | 10 | $ | (359 | ) | $ | 64,290 |
NOTE 4:- | FAIR VALUE MEASUREMENTS |
As of December 31, 2019 | ||||||||||||||||
Fair value measurements using input type | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-sale marketable securities | $ | - | $ | 61,012 | $ | - | $ | 61,012 | ||||||||
Foreign currency derivative contracts | - | (871 | ) | - | (871 | ) | ||||||||||
Earn-out liability | - | - | (1,100 | ) | (1,100 | ) | ||||||||||
Total financial net assets | $ | - | $ | 60,141 | $ | (1,100 | ) | $ | 59,041 |
As of December 31, 2018 | ||||||||||||||||
Fair value measurements using input type | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-sale marketable securities | $ | - | $ | 64,290 | $ | - | $ | 64,290 | ||||||||
Foreign currency derivative contracts | - | (324 | ) | - | (324 | ) | ||||||||||
Earn-out liability | - | - | (6,051 | ) | (6,051 | ) | ||||||||||
Total financial net assets | $ | - | $ | 63,966 | $ | (6,051 | ) | $ | 57,915 |
Balance at January 1, 2019 | $ | 6,051 | ||
Earn Out liability adjustments due to exchange rates | (113 | ) | ||
Adjustment due to change in forecast and time value of earn-out consideration | (4,838 | ) | ||
Balance at December 31, 2019 | $ | 1,100 |
As of December 31, 2021 | ||||||||||||||||
Fair value measurements using input type | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-sale marketable securities | $ | 0 | $ | 11,531 | $ | 0 | $ | 11,531 | ||||||||
Foreign currency derivative contracts | 0 | 902 | 0 | 902 | ||||||||||||
Total financial net assets | $ | 0 | $ | 12,433 | $ | 0 | $ | 12,433 |
As of December 31, 2020 | ||||||||||||||||
Fair value measurements using input type | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-sale marketable securities | $ | 0 | $ | 27,178 | $ | 0 | $ | 27,178 | ||||||||
Foreign currency derivative contracts | 0 | (952 | ) | 0 | (952 | ) | ||||||||||
Total financial net assets | $ | 0 | $ | 26,226 | $ | 0 | $ | 26,226 |
F - 29
NOTE 5:- | DERIVATIVE INSTRUMENTS |
Foreign exchange forward and | December 31, | |||||||||
options contracts | Balance sheet | 2019 | 2018 | |||||||
Fair value of foreign exchange hedge transactions | Other receivables and prepaid expenses | $ | 158 | $ | 56 | |||||
Fair value of foreign exchange hedge transactions | Other payables and accrued expenses | (1,041 | ) | (474 | ) | |||||
Total derivatives designated as hedging instruments | Other Comprehensive loss | $ | (846 | ) | $ | (418 | ) |
Foreign exchange forward and | December 31, | |||||||||
options contracts | Balance sheet | 2021 | 2020 | |||||||
Fair value of foreign exchange hedge transactions | Other receivables and prepaid expenses | $ | 973 | $ | 2,258 | |||||
Fair value of foreign exchange hedge transactions | Other payables and accrued expenses | (11 | ) | (3,224 | ) | |||||
Total derivatives designated as hedging instruments | Other Comprehensive profit (loss) | $ | 173 | $ | (326 | ) |
F - 30
NOTE 5:- | DERIVATIVE INSTRUMENTS (Cont.) |
Foreign exchange forward and | December 31, | |||||||||
options contracts | Balance sheet | 2019 | 2018 | |||||||
Fair value of foreign exchange non-designated hedge transactions | Other receivables and prepaid expenses | $ | 12 | $ | 94 | |||||
Total derivatives non-designated as hedging instruments | 12 | 94 |
Foreign exchange forward and | December 31, | |||||||||
options contracts | Balance sheet | 2021 | 2020 | |||||||
Fair value of foreign exchange non-designated hedge transactions | Other receivables and prepaid expenses | $ | 7 | $ | 0 | |||||
Fair value of foreign exchange non-designated hedge transactions | Other payables and accrued expenses | (67 | ) | (13 | ) | |||||
Total derivatives non-designated as hedging instruments | $ | (60 | ) | $ | (13 | ) |
NOTE 6:- | OTHER RECEIVABLES AND PREPAID EXPENSES |
December 31, | ||||||||
2021 | 2020 | |||||||
Prepaid expenses | $ | 4,029 | $ | 6,495 | ||||
Government authorities | 2,947 | 2,403 | ||||||
Prepayment to OEM | 0 | 2,359 | ||||||
Foreign currency derivative contracts | 980 | 2,285 | ||||||
Short-term lease deposits | 185 | 231 | ||||||
Grants receivable from the IIA | 0 | 103 | ||||||
Others | 349 | 329 | ||||||
$ | 8,490 | $ | 14,205 |
December 31, | ||||||||
2019 | 2018 | |||||||
Prepaid expenses | $ | 3,957 | $ | 1,635 | ||||
Government authorities | 1,773 | 1,327 | ||||||
Short-term lease deposits | 195 | 159 | ||||||
Foreign currency derivative contracts | 170 | 150 | ||||||
Others | 433 | 376 | ||||||
$ | 6,528 | $ | 3,647 |
F - 31
NOTE 7: - | INVENTORIES |
December 31, | ||||||||
2021 | 2020 | |||||||
Raw materials | $ | 1,494 | $ | 1,299 | ||||
Finished goods | 9,598 | 11,287 | ||||||
$ | 11,092 | $ | 12,586 |
December 31, | ||||||||
2019 | 2018 | |||||||
Raw materials | $ | 1,264 | $ | 551 | ||||
Finished goods | 9,404 | 10,794 | ||||||
$ | 10,668 | $ | 11,345 |
NOTE 8:- PROPERTY AND EQUIPMENT, NET
December 31, | ||||||||
2021 | 2020 | |||||||
Cost: | ||||||||
Lab equipment | $ | 18,871 | $ | 17,624 | ||||
Computers and peripheral equipment | 14,316 | 13,090 | ||||||
Office furniture and equipment | 1,510 | 1,454 | ||||||
Leasehold improvements | 3,039 | 3,134 | ||||||
SECaaS equipment | 5,886 | 2,976 | ||||||
43,622 | 38,278 | |||||||
Accumulated depreciation: | ||||||||
Lab equipment | 14,408 | 13,511 | ||||||
Computers and peripheral equipment | 11,164 | 10,501 | ||||||
Office furniture and equipment | 535 | 575 | ||||||
Leasehold improvements | 1,230 | 1,224 | ||||||
SECaaS equipment | 1,285 | 474 | ||||||
28,622 | 26,285 | |||||||
Depreciated cost | $ | 15,000 | $ | 11,993 |
December 31, | ||||||||
2019 | 2018 | |||||||
Cost: | ||||||||
Lab equipment | $ | 17,548 | $ | 16,038 | ||||
Computers and peripheral equipment | 22,374 | 20,680 | ||||||
Office furniture and equipment | 1,356 | 1,197 | ||||||
Leasehold improvements | 2,557 | 2,212 | ||||||
Lease equipment | 930 | - | ||||||
44,765 | 40,127 | |||||||
Accumulated depreciation: | ||||||||
Lab equipment | 14,548 | 13,273 | ||||||
Computers and peripheral equipment | 20,145 | 19,039 | ||||||
Office furniture and equipment | 659 | 598 | ||||||
Leasehold improvements | 1,162 | 968 | ||||||
Lease equipment | 116 | - | ||||||
36,630 | 33,878 | |||||||
Depreciated cost | $ | 8,135 | $ | 6,249 |
F - 32
NOTE 9:- | INTANGIBLE ASSETS, NET |
a. | The following table shows the Company's intangible assets for the periods presented: |
Weighted Average Useful life | December 31, | |||||||||||
(Years) | 2021 | 2020 | ||||||||||
Original Cost: | ||||||||||||
Technology | 3.8 | $ | 9,111 | $ | 9,111 | |||||||
Backlog | 2.8 | 1,877 | 1,877 | |||||||||
Customer relationships | 4.4 | 3,592 | 3,592 | |||||||||
Software license | 5 | 1,651 | 0 | |||||||||
IP R&D | 6 | 3,659 | 3,659 | |||||||||
$ | 19,890 | $ | 18,239 | |||||||||
Accumulated amortization: | ||||||||||||
Technology | $ | 9,111 | $ | 9,111 | ||||||||
Backlog | 1,877 | 1,877 | ||||||||||
Customer relationships | 3,592 | 3,592 | ||||||||||
Software license | �� | 330 | 0 | |||||||||
IP R&D | 1,525 | 915 | ||||||||||
$ | 16,435 | $ | 15,495 | |||||||||
Amortized cost | $ | 3,455 | $ | 2,744 |
Weighted Average Useful life | December 31, | |||||||||||
(Years) | 2019 | 2018 | ||||||||||
Original Cost: | ||||||||||||
Technology | 3.8 | $ | 9,111 | $ | 9,111 | |||||||
Backlog | 2.8 | 1,877 | 1,877 | |||||||||
Customer relationships | 4.4 | 3,592 | 3,592 | |||||||||
IP R&D | 6 | 3,659 | 3,659 | |||||||||
$ | 18,239 | $ | 18,239 | |||||||||
Accumulated amortization: | ||||||||||||
Technology | $ | 9,111 | $ | 8,563 | ||||||||
Backlog | 1,877 | 1,877 | ||||||||||
Customer relationships | 3,592 | 2,838 | ||||||||||
IP R&D | 305 | - | ||||||||||
$ | 14,885 | $ | 13,278 | |||||||||
Amortized cost | $ | 3,354 | $ | 4,961 |
b. | Amortization expense for the years ended December 31, 2021, 2020 and 2019 |
c. | Estimated amortization expense for the years ending: |
Year ending December 31, | ||||
2022 | $ | 940 | ||
2023 | 940 | |||
2024 | 940 | |||
Thereafter | 635 | |||
Total | $ | 3,455 |
Year ending December 31, | ||||
2020 | 610 | |||
2021 | 610 | |||
2022 | 610 | |||
Thereafter | 1,524 | |||
Total | 3,354 |
F - 33
NOTE 10:- | OTHER PAYABLES AND ACCRUED EXPENSES |
December 31, | ||||||||
2021 | 2020 | |||||||
Accrued expenses | $ | 7,405 | $ | 4,920 | ||||
Deferred revenues from IIA | 282 | 0 | ||||||
Government authorities | 2,592 | 3,723 | ||||||
Foreign currency derivative contracts | 78 | 3,237 | ||||||
Holdback and contingent earnout | 834 | 837 | ||||||
Provision for returns | 233 | 290 | ||||||
Advances from customers | 0 | 7 | ||||||
Others | 190 | 147 | ||||||
$ | 11,614 | $ | 13,161 |
December 31, | ||||||||
2019 | 2018 | |||||||
Advances from customers | $ | 253 | $ | 5,700 | ||||
Accrued expenses | 3,887 | 3,346 | ||||||
Government authorities | 3,061 | 3,356 | ||||||
Holdback and contingent earnout | 1,575 | 484 | ||||||
Foreign currency derivative contracts | 1,041 | 474 | ||||||
Provision for returns | 163 | 191 | ||||||
Others | 234 | 144 | ||||||
$ | 10,214 | $ | 13,695 |
NOTE 11:- | COMMITMENTS AND CONTINGENT LIABILITIES |
Year ended December 31, | |
Weighted average remaining lease term | 2.93 years |
Weighted average discount rate |
F - 34
NOTE 11:- | COMMITMENTS AND CONTINGENT LIABILITIES (Cont.) |
Year ending December 31, | ||||
2020 | $ | 3,170 | ||
2021 | 2,641 | |||
2022 | 1,019 | |||
2023 | 211 | |||
2024 and thereafter | 78 | |||
Total lease payments | $ | 7,119 | ||
Less - imputed interest | $ | (148 | ) | |
Present value of lease liabilities | $ | 6,971 |
Year ending December 31, | ||||
2022 | 2,804 | |||
2023 | 2,714 | |||
2024 | 2,302 | |||
2025 | 571 | |||
2026 and thereafter | 17 | |||
Total lease payments | 8,408 | |||
Less - imputed interest | (156 | ) | ||
Present value of lease liabilities | 8,252 |
F - 35
NOTE 12:- | SHAREHOLDERS' EQUITY |
a. | Company's shares: |
b. |
Year ended December 31, | ||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||
Number of shares upon exercise | Weighted average exercise price | Number of shares upon exercise | Weighted average exercise price | Number of shares upon exercise | Weighted average exercise price | |||||||||||||||||||
Outstanding at beginning of year | 1,736,143 | $ | 7.26 | 2,189,297 | $ | 7.63 | 1,959,014 | $ | 8.24 | |||||||||||||||
Granted | - | $ | - | 62,200 | $ | 5.91 | 676,550 | $ | 4.93 | |||||||||||||||
Forfeited | (59,107 | ) | $ | 10.05 | (414,617 | ) | $ | 9.79 | (346,750 | ) | $ | 7.01 | ||||||||||||
Exercised | (223,295 | ) | $ | 4.36 | (100,737 | ) | $ | 4.07 | (99,517 | ) | $ | 3.56 | ||||||||||||
Outstanding at end of year | 1,453,741 | $ | 7.59 | 1,736,143 | $ | 7.26 | 2,189,297 | $ | 7.63 | |||||||||||||||
Exercisable at end of year | 1,240,005 | $ | 8.01 | 1,281,665 | $ | 8.02 | 1,274,649 | $ | 9.26 | |||||||||||||||
Vested and expected to vest | 1,442,990 | $ | 7.61 | 1,464,802 | $ | 7.65 | 1,607,782 | $ | 8.44 |
Year ended December 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||
Number of shares upon exercise | Weighted average exercise price | Number of shares upon exercise | Weighted average exercise price | Number of shares upon exercise | Weighted average exercise price | |||||||||||||||||||
Outstanding at beginning of year | 1,134,256 | $ | 7.68 | 1,453,741 | $ | 7.59 | 1,736,143 | $ | 7.26 | |||||||||||||||
Granted | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | |||||||||||||||
Forfeited | (30,861 | ) | $ | 16.78 | (28,657 | ) | $ | 17.47 | (59,107 | ) | $ | 10.05 | ||||||||||||
Exercised | (427,409 | ) | $ | 6.54 | (290,828 | ) | $ | 6.25 | (223,295 | ) | $ | 4.36 | ||||||||||||
Outstanding at end of year | 675,986 | $ | 7.99 | 1,134,256 | $ | 7.68 | 1,453,741 | $ | 7.59 | |||||||||||||||
Exercisable at end of year | 660,986 | $ | 8.04 | 1,065,498 | $ | 7.83 | 1,240,005 | $ | 8.01 | |||||||||||||||
Vested and expected to vest | 675,584 | $ | 7.99 | 1,132,007 | $ | 7.68 | 1,442,990 | $ | 7.61 |
F - 36
NOTE 12:- | SHAREHOLDERS' EQUITY (Cont.) |
Exercise price | Shares upon exercise of options outstanding as of December 31, 2019 | Weighted average remaining contractual life | Shares upon exercise of options exercisable as of December 31, 2019 | |||||||||||
Years | ||||||||||||||
$ | 23.31-27.58 | 64,500 | 2.63 | 64,500 | ||||||||||
$ | 15.2-17.07 | 49,936 | 1.97 | 49,936 | ||||||||||
$ | 10.0 -14.68 | 173,250 | 3.92 | 173,250 | ||||||||||
$ | 5.01-9.7 | 508,083 | 2.84 | 435,487 | ||||||||||
$ | 0.1-4.95 | 657,972 | 4.00 | 516,832 | ||||||||||
1,453,741 | 1,240,005 |
Exercise price | Shares upon exercise of options outstanding as of December 31, 2021 | Weighted average remaining contractual life | Shares upon exercise of options exercisable as of December 31, 2021 | |||||||||||
Years | ||||||||||||||
$ | 23.31-27.58 | 45,500 | 0.65 | 45,500 | ||||||||||
$ | 15.2-17.07 | 13,000 | 1.04 | 13,000 | ||||||||||
$ | 10.0 -14.68 | 98,007 | 1.71 | 98,007 | ||||||||||
$ | 5.01-9.7 | 140,300 | 1.9 | 125,300 | ||||||||||
$ | 0.1-4.95 | 379,179 | 2.17 | 379,179 | ||||||||||
675,986 | 660,986 |
Year ended December 31, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Number of shares upon exercise | Weighted average share price | Number of shares upon exercise | Weighted average share price | |||||||||||||
Outstanding at beginning of year | 1,252,031 | $ | 5.45 | 713,090 | $ | 6.04 | ||||||||||
Granted | 1,001,000 | $ | 7.53 | 996,200 | $ | 5.54 | ||||||||||
Vested | (401,904 | ) | $ | 7.53 | (312,201 | ) | $ | 5.72 | ||||||||
Forfeited | (199,067 | ) | $ | 7.61 | (145,058 | ) | $ | 5.01 | ||||||||
Unvested at end of year | 1,652,060 | $ | 6.53 | 1,252,031 | $ | 5.45 |
Year ended December 31, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
Number of shares upon exercise | Weighted average share price | Number of shares upon exercise | Weighted average share price | |||||||||||||
Outstanding at beginning of year | 1,763,017 | $ | 8.63 | 1,652,060 | $ | 6.53 | ||||||||||
Granted | 1,149,500 | $ | 16.26 | 869,250 | $ | 10.96 | ||||||||||
Vested | (681,433 | ) | $ | 15.82 | (570,000 | ) | $ | 10.69 | ||||||||
Forfeited | (293,176 | ) | $ | 16.39 | (188,293 | ) | $ | 10.01 | ||||||||
Unvested at end of year | 1,937,908 | $ | 12.92 | 1,763,017 | $ | 8.63 |
F - 37
NOTE 13:- | TAXES ON INCOME |
a. | Corporate tax rates: |
b. | Foreign Exchange Regulations: |
c. | Tax benefits under Israel's law for the Encouragement of Capital Investments, 1959 ("the Law"): |
F - 38
NOTE 13: - | TAXES ON INCOME (Cont.) |
F - 39
NOTE 13: - | TAXES ON INCOME (Cont.) |
d. | Tax benefits under the law for the Encouragement of Industry (Taxes), 1969 (the "Encouragement Law"): |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Domestic | $ | (8,934 | ) | $ | (9,877 | ) | $ | (17,539 | ) | |||
Foreign | 1,916 | 1,890 | 1,031 | |||||||||
$ | (7,018 | ) | $ | (7,987 | ) | $ | (16,508 | ) |
F - 4140
NOTE 13:- | TAXES ON INCOME (Cont.) |
Pre-tax income (loss) is comprised as follows: |
Year ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Domestic | $ | (15,419 | ) | $ | (8,722 | ) | $ | (8,934 | ) | |||
Foreign | 2,230 | 1,550 | 1,916 | |||||||||
$ | (13,189 | ) | $ | (7,172 | ) | $ | (7,018 | ) |
f. | A reconciliation of the theoretical tax expenses, assuming all income is taxed at the statutory tax rate applicable to the income of the Company and the actual tax expenses is as follows: |
Year ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Loss before taxes on income | $ | (13,189 | ) | $ | (7,172 | ) | $ | (7,018 | ) | |||
Theoretical tax income computed at the Israeli statutory tax rate (23% for the years 2021, 2020 and 2019, respectively) | $ | (3,034 | ) | $ | (1,650 | ) | $ | (1,614 | ) | |||
Changes in valuation allowance | 2,604 | 1,979 | 951 | |||||||||
Increase in losses and temporary differences due to change in Israeli corporate and “Approved Enterprise" tax | 0 | 0 | 0 | |||||||||
Write off of prepaid and withholding taxes | 875 | 1,066 | 1,536 | |||||||||
Foreign tax rates differences related to subsidiaries | 14 | 35 | 44 | |||||||||
Non-deductible expenses | 71 | 72 | 470 | |||||||||
Capital note release taxes | 100 | 0 | 0 | |||||||||
Other expenses and Exchange rate differences | 488 | (383 | ) | (143 | ) | |||||||
Non-deductible share-based compensation expense | 633 | 557 | 397 | |||||||||
Change in expense associated with tax positions for current year | 100 | 500 | 0 | |||||||||
Actual tax expense | $ | 1,851 | $ | 2,176 | $ | 1,641 |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Loss before taxes on income | $ | (7,018 | ) | $ | (7,987 | ) | $ | (16,508 | ) | |||
Theoretical tax income computed at the Israeli statutory tax rate (23%, 23% and 24% for the years 2019, 2018 and 2017, respectively) | $ | (1,614 | ) | $ | (1,837 | ) | $ | (3,962 | ) | |||
Changes in valuation allowance | 951 | 1,189 | 8,946 | |||||||||
Increase in losses and temporary differences due to change in Israeli corporate and “Approved Enterprise" tax | - | 659 | (5,376 | ) | ||||||||
Previous years | ||||||||||||
Write off of prepaid and withholding taxes | 1,536 | 1,828 | 909 | |||||||||
Foreign tax rates differences related to subsidiaries | 44 | 50 | (48 | ) | ||||||||
Non-deductible expenses and other | 327 | 65 | 684 | |||||||||
Non-deductible share-based compensation expense | 397 | 474 | 411 | |||||||||
Actual tax expense | $ | 1,641 | $ | 2,428 | $ | 1,564 |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Current taxes | $ | 341 | $ | 580 | $ | 689 | ||||||
Deferred taxes expense (benefit) | (236 | ) | 20 | (34 | ) | |||||||
Write off of prepaid and withholding taxes | 1,536 | 1,828 | 909 | |||||||||
$ | 1,641 | $ | 2,428 | $ | 1,564 |
F - 4241
NOTE 13:- | TAXES ON INCOME (Cont.) |
g. | Income tax expense is comprised as follows: |
Year ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Current taxes | $ | 334 | 513 | $ | 341 | |||||||
Deferred taxes expense (benefit) | 420 | 97 | (236 | ) | ||||||||
Taxes in respect of previous years | 122 | 0 | 0 | |||||||||
Write off of prepaid and withholding taxes | 875 | 1,066 | 1,536 | |||||||||
Change in expense associated with tax positions for current year | 100 | 500 | 0 | |||||||||
1,851 | 2,176 | 1,641 |
F - 4342
NOTE 13:- | TAXES ON INCOME (Cont.) |
i. | Deferred income taxes: |
December 31, | ||||||||
2021 | 2020 | |||||||
Deferred tax assets: | ||||||||
Operating and capital loss carryforwards | $ | 22,332 | $ | 26,731 | ||||
Research and development | 9,161 | 2,602 | ||||||
Employee benefits | 1,629 | 1,368 | ||||||
Intangible assets | 179 | 282 | ||||||
Other temporary differences mainly relating to reserve and allowances | 2,336 | 1,607 | ||||||
Deferred tax asset before valuation allowance | 35,637 | 32,590 | ||||||
Valuation allowance | (30,256 | ) | (27,652 | ) | ||||
Deferred tax asset net of valuation allowance | 5,381 | 4,938 | ||||||
Deferred tax liability: | ||||||||
Intangible assets | 3,423 | 3,493 | ||||||
Other temporary differences mainly relating to reserve and allowances | 1,958 | 1,025 | ||||||
Net deferred tax asset | $ | 0 | $ | 420 |
December 31, | ||||||||
2019 | 2018 | |||||||
Deferred tax assets: | ||||||||
Operating and capital loss carryforwards | $ | 22,353 | $ | 21,348 | ||||
Reserves and allowances including lease liability | 9,071 | 3,723 | ||||||
Deferred tax asset before valuation allowance | 31,424 | 25,071 | ||||||
Valuation allowance | (25,880 | ) | (24,790 | ) | ||||
Deferred tax asset net of valuation allowance | 5,544 | 281 | ||||||
Deferred tax liability including ROU asset | 5,027 | - | ||||||
Net deferred tax asset | $ | 517 | $ | 281 |
j. | As of December 31, |
F - 43
NOTE 14:- | GEOGRAPHIC INFORMATION |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Europe | $ | 36,199 | $ | 45,730 | $ | 40,394 | ||||||
Asia and Oceania | 42,994 | 22,018 | 13,936 | |||||||||
Americas | 16,576 | 14,363 | 15,532 | |||||||||
Middle East and Africa | 14,331 | 13,726 | 12,130 | |||||||||
$ | 110,100 | $ | 95,837 | $ | 81,992 |
Year ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Europe | $ | 58,414 | $ | 94,644 | $ | 36,199 | ||||||
Asia and Oceania | 44,227 | 23,519 | 42,994 | |||||||||
Americas | 19,391 | 8,131 | 16,576 | |||||||||
Middle East and Africa | 23,568 | 9,628 | 14,331 | |||||||||
$ | 145,600 | $ | 135,922 | $ | 110,100 |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Customer A | 16 | % | 22 | % | 32 | % | ||||||
Customer B | 11 | % | - | - | ||||||||
27 | % | 22 | % | 32 | % |
Year ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
1st Customer | 11 | % | 43 | % | 16 | % | ||||||
2nd Customer | 0 | 11 | % | 11 | % | |||||||
11 | % | 54 | % | 27 | % |
December 31, | ||||||||
2019 | 2018 | |||||||
Long-lived assets: | ||||||||
Israel | $ | 7,614 | $ | 5,931 | ||||
Other | 521 | 317 | ||||||
$ | 8,135 | $ | 6,249 |
December 31, | ||||||||
2021 | 2020 | |||||||
Long-lived assets: | ||||||||
Israel | $ | 21,821 | $ | 14,210 | ||||
Other | 1,692 | 2,241 | ||||||
$ | 23,513 | $ | 16,451 |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Financial income: | ||||||||||||
Interest income | $ | 2,551 | $ | 2,696 | $ | 2,513 | ||||||
Exchange rate differences and other | - | 305 | - | |||||||||
Financial expenses: | ||||||||||||
Exchange rate differences and other | 334 | - | 602 | |||||||||
Amortization/accretion of premium/discount on marketable securities, net | 257 | 793 | 1,017 | |||||||||
$ | 1,960 | $ | 2,208 | $ | 894 |
F - 4544
NOTE 15: - | FINANCIAL INCOME (EXPENSES), NET |
Year ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Financial income: | ||||||||||||
Interest income | $ | 1,045 | $ | 1,754 | $ | 2,551 | ||||||
Exchange rate differences and other | 0 | 231 | 0 | |||||||||
Financial expenses: | ||||||||||||
Exchange rate differences and other | 630 | 0 | 334 | |||||||||
Amortization/accretion of premium/discount on marketable securities, net | 76 | 128 | 257 | |||||||||
$ | 339 | $ | 1,857 | $ | 1,960 |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Numerator: | ||||||||||||
Net loss | $ | (8,659 | ) | $ | (10,415 | ) | $ | (18,072 | ) | |||
Denominator: | ||||||||||||
Weighted average number of shares outstanding used in computing basic and diluted net loss per share | 34,250,582 | 33,710,507 | 33,253,158 | |||||||||
Basic and diluted net loss per share | $ | (0.25 | ) | $ | (0.31 | ) | $ | (0.54 | ) |
Year ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Numerator: | ||||||||||||
Net loss | $ | (15,040 | ) | $ | (9,348 | ) | $ | (8,659 | ) | |||
Denominator: | ||||||||||||
Weighted average number of shares outstanding used in computing basic and diluted net loss per share | 36,050,540 | 35,007,201 | 34,250,582 | |||||||||
Basic and diluted net loss per share | $ | (0.42 | ) | $ | (0.27 | ) | $ | (0.25 | ) |
F - 46