Cover
Cover - shares | 12 Months Ended | |
Dec. 31, 2023 | Mar. 01, 2024 | |
Document Information [Line Items] | ||
Document Type | 20-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Financial Statement Error Correction [Flag] | false | |
Document Shell Company Report | false | |
Entity Interactive Data Current | Yes | |
Document Accounting Standard | U.S. GAAP | |
ICFR Auditor Attestation Flag | false | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Entity Information [Line Items] | ||
Entity Registrant Name | Arbe Robotics Ltd. | |
Entity Central Index Key | 0001861841 | |
Entity File Number | 001-40884 | |
Entity Incorporation, State or Country Code | L3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Contact Personnel [Line Items] | ||
Entity Address, Address Line One | 107 HaHashmonaim St | |
Entity Address, City or Town | Tel Aviv-Yafo | |
Entity Address, Country | IL | |
Entity Address, Postal Zip Code | 6329302 | |
Entity Listings [Line Items] | ||
Entity Common Stock, Shares Outstanding | 78,221,557 | |
Ordinary shares, par value NIS 0.000216 per share | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Ordinary shares, par value NIS 0.000216 per share | |
Trading Symbol | ARBE | |
Security Exchange Name | NASDAQ | |
Warrants | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Warrants | |
Trading Symbol | ARBEW | |
Security Exchange Name | NASDAQ | |
Business Contact [Member] | ||
Entity Contact Personnel [Line Items] | ||
Contact Personnel Name | Kobi Marenko | |
Contact Personnel Email Address | kobi.m@arberobotics.com | |
Entity Address, Address Line One | 107 HaHashmonaim St | |
Entity Address, City or Town | Tel Aviv-Yafo | |
Entity Address, Country | IL | |
Entity Address, Postal Zip Code | 6329302 | |
Entity Phone Fax Numbers [Line Items] | ||
City Area Code | 972 | |
Local Phone Number | 73-7969804 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor [Table] | |
Auditor Name | Somekh Chaikin |
Auditor Firm ID | 1057 |
Auditor Location | Tel Aviv, Israel |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 28,587 | $ 54,171 | |
Restricted cash | 163 | 144 | |
Short term bank deposits | 15,402 | 400 | |
Trade receivable | 1,258 | 2,202 | |
Prepaid expenses and other receivables | 2,026 | 1,839 | |
Total current assets | 47,436 | 58,756 | |
NON-CURRENT ASSETS: | |||
Operating lease right-of-use assets | 1,740 | 465 | |
Property and equipment, net | 1,309 | 1,609 | |
Total non-current assets | 3,049 | 2,074 | |
Total assets | 50,485 | 60,830 | |
CURRENT LIABILITIES: | |||
Trade payables | 1,149 | 1,244 | |
Operating lease liabilities | 436 | 364 | |
Employees and payroll accruals | 2,916 | 2,861 | |
Deferred revenue | 351 | ||
Accrued expenses and other payables | 1,710 | 5,609 | |
Total current liabilities | 6,211 | 10,429 | |
LONG-TERM LIABILITIES: | |||
Operating lease liabilities | 1,306 | 17 | |
Warrant liabilities | 875 | 1,631 | |
Total long-term liabilities | 2,181 | 1,648 | |
SHAREHOLDERS’ EQUITY: | |||
Ordinary Shares, NIS 0.000216 par value; 130,000,000 authorized shares as of December 31, 2023 and 2022; 77,925,095 and 64,160,890 outstanding shares at December 31, 2023 and 2022, respectively | [1] | ||
Additional paid-in capital | 245,733 | 208,893 | |
Accumulated deficit | (203,640) | (160,140) | |
Total shareholders’ equity | 42,093 | 48,753 | |
Total liabilities and shareholders’ equity | $ 50,485 | $ 60,830 | |
[1] Represents less than $1. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - ₪ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in New Shekels per share) | ₪ 0.000216 | ₪ 0.000216 |
Ordinary Shares, shares authorized | 130,000,000 | 130,000,000 |
Ordinary Shares, shares outstanding | 77,925,095 | 64,160,890 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Statement [Abstract] | ||||
Revenues | $ 1,470 | $ 3,517 | $ 2,249 | |
Costs of revenues | 1,508 | 1,283 | 1,440 | |
Gross profit (loss) | (38) | 2,234 | 809 | |
Operating expenses: | ||||
Research and development, net | 34,082 | 36,731 | 28,564 | |
Sales and marketing | 5,194 | 4,621 | 1,814 | |
General and administrative | 7,571 | 8,613 | 3,709 | |
Total operating expenses | 46,847 | 49,965 | 34,087 | |
Operating loss | (46,885) | (47,731) | (33,278) | |
Financial expense (income), net | (3,385) | (7,237) | 24,814 | |
Net loss | $ (43,500) | $ (40,494) | $ (58,092) | |
Basic loss per share attributable to Ordinary Shareholders (in Dollars per share) | $ (0.6) | $ (0.64) | $ (2.64) | |
Weighted-average number of shares used in computing basic loss per share attributable to Ordinary Shareholders (in Shares) | 72,021,520 | 68,489,983 | 22,027,292 | |
Diluted loss per share attributable to Ordinary Shareholders (in Dollars per share) | [1] | $ (0.71) | $ (0.8) | $ (2.64) |
Weighted-average number of shares used in computing diluted loss per share attributable to Ordinary Shareholders (in Shares) | 62,390,302 | 60,960,641 | 22,027,292 | |
[1] Loss per share attributable to ordinary shareholders, diluted, was adjusted and take into consideration warrants liabilities revaluations as part of our net loss for 2023 and 2022. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Redeemable Convertible Preferred Shares and Shareholders’ Equity (Deficiency) - USD ($) $ in Thousands | Seed Redeemable convertible preferred Shares | Series A Redeemable convertible preferred Shares | Series A-1 Redeemable convertible preferred Shares | Series B Redeemable convertible preferred Shares | Series B-1 Redeemable convertible preferred Shares | Series B-2 Redeemable convertible preferred Shares | Redeemable convertible preferred Shares | Ordinary shares | Additional paid-in capital | Accumulated deficit | Total | |
Balance at Dec. 31, 2020 | $ 650 | $ 9,394 | $ 2,500 | $ 32,159 | $ 10,447 | $ 290 | $ 55,440 | [1] | $ 1,397 | $ (61,554) | $ (60,157) | |
Balance (in Shares) at Dec. 31, 2020 | 5,540,254 | 7,780,937 | 5,460,043 | 10,863,143 | 4,144,887 | 71,977 | 9,272,428 | |||||
Exercise of warrants | $ 8,027 | 8,027 | [1] | 9,222 | 9,222 | |||||||
Exercise of warrants (in Shares) | 1,194,886 | 872,614 | ||||||||||
Conversion of preferred shares into ordinary shares | $ (650) | $ (9,394) | $ (2,500) | $ (32,159) | $ (10,447) | $ (8,317) | (63,467) | [1] | 63,467 | 63,467 | ||
Conversion of preferred shares into ordinary shares (in Shares) | (5,540,254) | (7,780,937) | (5,460,043) | (10,863,143) | (4,144,887) | (1,266,863) | 35,056,127 | |||||
Conversion of convertible loan to ordinary shares | [1] | 30,844 | 30,844 | |||||||||
Conversion of convertible loan to ordinary shares (in Shares) | 3,205,020 | |||||||||||
Issuance of ordinary shares, net of issuance costs | [1] | 91,990 | 91,990 | |||||||||
Issuance of ordinary shares, net of issuance costs (in Shares) | 13,866,887 | |||||||||||
Stock-based compensation | 2,211 | 2,211 | ||||||||||
Stock-based compensation to service providers | 115 | 115 | ||||||||||
Exercise of options and vested RSUs | [1] | 223 | 223 | |||||||||
Exercise of options and vested RSUs (in Shares) | 743,780 | |||||||||||
Net loss | (58,092) | (58,092) | ||||||||||
Balance at Dec. 31, 2021 | [1] | 199,469 | (119,646) | 79,823 | ||||||||
Balance (in Shares) at Dec. 31, 2021 | 63,016,856 | |||||||||||
Stock-based compensation | 8,793 | 8,793 | ||||||||||
Stock-based compensation to service providers | 354 | 354 | ||||||||||
Exercise of options and vested RSUs | [1] | 277 | 277 | |||||||||
Exercise of options and vested RSUs (in Shares) | 1,144,034 | |||||||||||
Net loss | (40,494) | (40,494) | ||||||||||
Balance at Dec. 31, 2022 | [1] | 208,893 | (160,140) | 48,753 | ||||||||
Balance (in Shares) at Dec. 31, 2022 | 64,160,890 | |||||||||||
Issuance of ordinary shares, net of issuance costs | 22,496 | 22,496 | ||||||||||
Issuance of ordinary shares, net of issuance costs (in Shares) | 11,794,873 | |||||||||||
Stock-based compensation | 13,012 | 13,012 | ||||||||||
Stock-based compensation to service providers | 629 | 629 | ||||||||||
Exercise of options and vested RSUs | [1] | 703 | 703 | |||||||||
Exercise of options and vested RSUs (in Shares) | 1,969,332 | |||||||||||
Net loss | (43,500) | (43,500) | ||||||||||
Balance at Dec. 31, 2023 | [1] | $ 245,733 | $ (203,640) | $ 42,093 | ||||||||
Balance (in Shares) at Dec. 31, 2023 | 77,925,095 | |||||||||||
[1] Represents less than $1. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (43,500,000) | $ (40,494,000) | $ (58,092,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 557,000 | 481,000 | 342,000 |
Stock-based compensation | 13,012,000 | 8,793,000 | 2,211,000 |
Stock-based compensation to service providers | 629,000 | 354,000 | 115,000 |
Revaluation of warrants and accretion | (756,000) | (8,122,000) | 6,599,000 |
Revaluation of convertible loan | 17,866,000 | ||
Change in operating assets and liabilities: | |||
Trade receivable | 694,000 | (2,015,000) | (50,000) |
Prepaid expenses and other receivables | (187,000) | 1,219,000 | (2,228,000) |
Operating lease ROU assets and liabilities, net | 86,000 | (84,000) | |
Trade payables | (103,000) | (769,000) | 458,000 |
Employees and payroll accruals | 55,000 | (234,000) | 1,557,000 |
Deferred revenue | (101,000) | (375,000) | 445,000 |
Accrued expenses and other payables | (3,899,000) | 884,000 | 4,361,000 |
Net cash used in operating activities | (33,513,000) | (40,362,000) | (26,416,000) |
Cash flows from investing activities: | |||
Change in bank deposits | (15,002,000) | (400,000) | 100,000 |
Purchase of property and equipment | (249,000) | (918,000) | (784,000) |
Net cash used in investing activities | (15,251,000) | (1,318,000) | (684,000) |
Cash flows from financing activities: | |||
Proceeds from short-term loan | 4,715,000 | ||
Repayment of long-term loan | (2,639,000) | ||
Proceeds from recapitalization and PIPE offering, net of issuance costs | 98,587,000 | ||
Repayment of short-term loan | (5,218,000) | ||
Proceeds from issuance of ordinary shares, net of issuance costs | 22,496,000 | ||
Proceeds from exercise of warrants | 12,859,000 | ||
Proceeds from exercise of options | 703,000 | 277,000 | 223,000 |
Proceeds from convertible loan | 11,337,000 | ||
Net cash provided by (used in) financing activities | 23,199,000 | (4,941,000) | 125,082,000 |
Effect of exchange rate fluctuations on cash and cash equivalent | 47,000 | (1,189,000) | |
Increase (decrease) in cash, cash equivalents and restricted cash | (25,612,000) | (45,432,000) | 97,982,000 |
Cash, cash equivalents and restricted cash at the beginning of the year | 54,315,000 | 100,936,000 | 2,954,000 |
Cash, cash equivalents and restricted cash at the end of the year | 28,750,000 | 54,315,000 | 100,936,000 |
Supplemental non-cash disclosure: | |||
Exercise of warrants into convertible preferred shares | 4,389,000 | ||
Issuance of private warrants | 6,598,000 | ||
Conversion of convertible loan into ordinary shares upon the recapitalization | 30,844,000 | ||
Conversion of preferred shares into ordinary shares upon the recapitalization | 63,467,000 | ||
Lease liabilities arising from obtaining right-of-use assets | 1,713,000 | 797,000 | |
Purchase of property and equipment | 8,000 | 7,000 | 340,000 |
Supplemental disclosure of cash flows activities: | |||
Interest paid | $ 250,000 | $ 209,000 |
General
General | 12 Months Ended |
Dec. 31, 2023 | |
General [Abstract] | |
GENERAL | Note 1:- General a. Arbe Robotics Ltd. (the “Company”) was founded and registered on November 4, 2015 and commenced its activities in January 2016. The Company, a global leader in Perception Radar solutions, is spearheading a radar revolution, enabling truly safe driver-assist systems today while paving the way to full autonomous-driving. The Company’s radar technology is a critical sensor for L2+ and higher autonomy. The Company is empowering automakers, Tier 1 suppliers, autonomous ground vehicles, commercial and industrial vehicles, and a wide array of safety applications with advanced sensing and paradigm changing perception. The Company’s Ordinary Shares and Warrants are listed on the Nasdaq Capital Market under the symbols “ARBE” and “ARBEW,” respectively. b. On October 26, 2017, the Company established a Delaware subsidiary, Arbe Robotics US Inc. Arbe Robotics US Inc is engaged mainly in the Company’s sales and will operate as the Company’s distributor in the U.S. On February 5, 2024, the Company established a Chinese subsidiary, Shanghai Arbe Technologies Co., Ltd (“Arbe China”). Arbe China was formed to assist mainly in providing customer support in the China region. c. On October 7, 2021, the Company consummated the merger (the “Merger”) pursuant to which the Company’s wholly-owned subsidiary, Autobot MergerSub, Inc. (“Merger Sub”) was merged with an into Industrial Tech Acquisitions Inc. (“ITAC”) pursuant to which ITAC became a wholly-owned subsidiary of the Company, and the Company issued ordinary shares and warrants to the holders of ITAC common stock and warrants, respectively. In connection with the Merger, the name of ITAC was changed to Autobot HoldCo, Inc. In connection with the Merger, and immediately prior to the closing of the Merger, the Company effected a recapitalization (the “Recapitalization”), which was approved by the Company’s directors and shareholders. As part of the Recapitalization, (i) all warrants (other than certain outstanding warrants) were exercised, (ii) all outstanding preferred shares, including preferred shares issued upon exercise of warrants, were converted into ordinary shares and (iii) the ordinary shares that were outstanding after the exercise and conversion pursuant to clauses (i) and (ii) became and were converted into a total of 48,268,611 ordinary shares. The Recapitalization resulted in a 46.25783-for-one stock split and a change in the par value of the ordinary shares from NIS 0.01 per share to NIS 0.000216 per share. The stock split was based on a valuation of the Ordinary Shares of $525,000 after the Recapitalization, with each Ordinary Share being valued at $10.00. As part of the Recapitalization, the number of Ordinary Shares issuable upon exercise of outstanding options and warrants was multiplied by the stock split ratio, which is the conversion ratio, and the exercise price of such options and warrants was divided by the conversion ratio. Fractional shares were rounded to the closest integral number of Ordinary Shares, with a half-share being rounded to the next higher number of Ordinary Shares. As a result, all Ordinary Shares, preferred shares, options to purchase ordinary shares, warrants to purchase preferred shares, exercise price and net loss per share amounts in these financial statements were adjusted retroactively for the year ended December 31, 2021, as if the stock split and change in par value had been in effect at January 1, 2021. Pursuant to the Merger, Arbe issued to ITAC securityholders (a) 3,866,842 Ordinary Shares to the holders of ITAC common stock and (b) 10,735,680 Arbe warrants to the holders of ITAC warrants, of which 7,623,600 warrants are public warrants and 3,112,080 warrants are private warrants. Total gross proceeds resulted from the Merger and the related PIPE financing were approximately $118,288, of which total transaction costs amounted to approximately $16,707. The total gross proceeds include the $100,000 from the sale of 10,000,000 Ordinary Shares to the PIPE investors at $10.00 per share. d. The Company depends on one supplier for the development and productization of its products. If this supplier fails to deliver or delays the delivery of the necessary products, the Company will be required to seek alternative sources of supply. A change in supplier could result in manufacturing delays and increased costs, which could result in a possible loss of sales which would adversely affect the Company’s business, prospects, results of operations and financial position. e. As the Company operates internationally and substantially all of its revenue is derived from sales outside of Israel, the business is affected by inflation, supply chain issues and economic conditions in countries in which the Company is seeking to conduct business, security and cybersecurity issues, fiscal and monetary policies, interest rates and regulations affection the automobile industry, the timing by the automobile and other industries on the introduction of unmanned automobiles and other unmanned devices, safety concerns and well as the effect of regional conflicts and steps taken by governments with respect to parties to such conflicts. As an Israeli company, the Company is also subject to the effect on Israel and the Israeli economy of the present war with Hamas as well as any other regional conflicts which may develop and the relationship between Israel and other countries, including the United States, China and the European Union. f. The Company has incurred losses from operations since its inception and has negative cash flow from operating activities. Management's plans with regard to these matters include continued development and marketing of its products as well as seeking additional financing arrangements. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | Note 2:- Significant Accounting Policies a. Basis of presentation: The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP). The significant accounting policies followed in the preparation of the financial statements applied on a consistent basis for all years presented in these financial statements. The consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. b. Use of estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions including fair value of warrants, share-based compensation and the underlying fair value of the Company’s Ordinary Shares issued prior to the Merger. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates. c. Consolidated financial statements in U.S. dollars: A substantial portion the Company’s activity including transactions with customers, as well as equity transactions and cash investments, are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the currency of the primary economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S. dollar. A subsidiary’s functional currency is the currency of the primary economic environment in which the subsidiary operates; normally, that is the currency of the environment in which a subsidiary primarily generates and expends cash. In making the determination of the appropriate functional currency for a subsidiary, the Company considers cash flow indicators, local market indicators, financing indicators and the subsidiary’s relationship with both the parent company and other subsidiaries. The Company has determined the functional currency of its U.S. subsidiaries to be the U.S. Dollar. Monetary accounts maintained in currencies other than the U.S. dollar are remeasured into U.S. dollars in accordance with Statement of the Accounting Standard Codification (“ASC”) No. 830 “Foreign Currency Matters” (“ASC No. 830”). All transaction gains and losses of the remeasured monetary balance sheet items are reflected in the statements of operations as financial income or expenses as appropriate. Transactions in foreign currency are translated into dollars in accordance with the principles set forth in ASC Subtopic 830-20, Foreign Currency Transaction d. Concentration of credit risk: Most of the Company’s cash and cash equivalents, restricted cash and short-term deposits were deposited with Israeli banks and were comprised mainly of cash deposits and short-term deposits. The Company’s trade receivables are derived from customers located globally. The Company mitigates its credit risks by performing credit evaluations of its customers’ financial conditions and requires customer advance payments in certain circumstances. The Company generally does not require collateral. e. Cash and cash equivalents and restricted cash: The Company considers all highly liquid short-term deposits with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of amounts invested in short-term deposits. Restricted cash consists of deposits at a financial institution that serves as collateral for a credit card agreement and lease agreements. f. Short term deposits: Short-term deposits are bank deposits with an original maturity of more than three months and less than one year from the date of acquisition. The deposits are presented according to their terms of deposit. As of December 31, 2023, these bank deposit bearing annual interest rates in the range of 4%-6%, g. Fair value of financial instruments: The estimated fair value of financial instruments has been determined by the Company using available market information and valuation methodologies. Considerable judgment is required in estimating fair values. Accordingly, the estimates may not be indicative of the amounts the Company could realize in a current market exchange. The following methods and assumptions were used by the Company in estimating the fair value of their financial instruments: The carrying values of cash and cash equivalents, short-term deposits, restricted cash, trade receivables, other current assets, trade payables, employees and payroll accruals, accrued expenses and other current liabilities approximate their fair values due to the short-term maturities of these instruments. The Company applies ASC No. 820, “Fair Value Measurements and Disclosures” (“ASC No. 820”), with respect to fair value measurements of all financial assets and liabilities. In accordance with ASC No. 820, the Company measures its short-term deposits and warrant liability at fair value. Short-term deposits are classified within Level 1 because these assets are valued using quoted market prices. Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: ● 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. ● Level 3—Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Pursuant to the Merger, the Company (i) assumed a derivative warrant liability related to Company’s warrants that were issued to the holders of private placement warrants that had been issued by ITAC in connection with its initial public offering, and (ii) issued equity instrument in connection with warrants that had been issued as part of ITAC’s initial public offering and pursuant to the Merger became warrants to purchase the Company’s Ordinary Shares. The fair value of the Company’s public warrants is measured based on the market price of such warrants and are considered a Level 1 fair value measurement. The Company utilizes a Black-Scholes option pricing model to estimate the fair value of the private placement warrants which are considered a Level 3 fair value measurement. The Company’s private warrants are measured at each reporting period, with changes in fair value recognized in the statement of operations. See Note 8. h. Trade Receivables Trade receivables are recorded at the invoiced amount and do not bear interest. Trade receivables are periodically assessed for allowance for doubtful accounts, which is the Company’s best estimate of the amount of credit losses with respect to its existing trade receivable. The Company’s accounts receivables accounting policy from January 1, 2023, following the adoption of the new current expected credit losses (“CECL”) standard: The Company estimates CECL on trade receivables at inception for estimated losses resulting from the inability of the Company’s customers to make required payments, based on estimated current expected credit losses. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering historical information, current market conditions and reasonable and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. The allowance for credit losses was not material for the years ended December 31, 2023, 2022 and 2021. i. Property and equipment: Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in income. Repair and maintenance costs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers and peripheral equipment 15-33 Office furniture and equipment 7-15 Vehicles 15 Leasehold improvement (*) (*) Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the improvements. j. Impairment of long-lived assets: Long-lived assets are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment” a (“ASC 360”), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment exists when the carrying value of the asset exceeds the aggregate undiscounted cash flows expected to be generated by the asset. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. During the years ended December 31, 2023, 2022 and 2021, no impairment losses were identified. k. Accrued post-employment benefit: The employees of Arbe Ltd. are included under section 14 of the Israeli Severance Compensation Act, 1963 (“Section 14”). Pursuant to Section 14, the Company’s Israeli employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, deposited on their behalf to their chosen insurance funds. By making the payments in accordance with Section 14, the Company is released from any future severance payments in respect of those employees. The obligation to make the monthly deposits is expensed as incurred. The deposits pursuant to Section 14 are not recorded as an asset in the consolidated balance sheet, and there is no liability recorded as the Company does not have a future obligation to make any additional payments. Severance costs amounted to approximately $1,166, $1,240 and $826 for the years ended December 31, 2023, 2022 and 2021, respectively. One of the Company’s U.S. Subsidiaries has a 401(k) defined contribution plan covering one employee in the U.S. The expenses recorded by the U.S. subsidiaries for matching contributions for the years ended December 31, 2023, 2022 and 2021 were immaterial. l. Stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation - Stock Compensation”, which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees, nonemployees and directors. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the Company’s statements of operations over the applicable service periods. The Company measures its share-based payment awards made to employees, directors, and non-employee service providers based on estimated fair values. The fair value of each option award is estimated on the grant date using the Black-Scholes option pricing model which requires several assumptions, of which the most significant are the expected share price volatility and the expected option term. The Company recognizes forfeitures of equity-based awards as they occur. For graded vesting awards, the Company recognizes compensation expenses based on the straight-line method over the applicable service period. m. Net loss per share attributable to ordinary shareholders: The Company computes net loss per share using the two-class method required for participating securities. The two-class method requires income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considered its convertible preferred shares, which were outstanding through October 7, 2021, the date of the closing of the Merger, to be participating securities as the holders of the convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares, equal to the higher of their original issue price pro-rata basis assuming conversion of all convertible preferred shares into ordinary shares and that there are no preferences to any holders of any shares. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss for the periods presented was not allocated to the Company’s participating securities. The Company’s basic net loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury share method or the if-converted method based on the nature of such securities. Diluted net loss per share is the same as basic net loss per share in periods when the effects of potentially dilutive shares of ordinary shares are anti-dilutive. See Note 10. n. Other Comprehensive loss: The Company has no components of comprehensive loss other than net loss. Thus, comprehensive loss is the same as net loss for the periods presented. p. Revenue recognition: The Company follows the provisions of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), which apply to all contracts with customers. Under Topic 606, revenues are recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine the appropriate revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: Identify the contract(s) with a customer; ● Identify the performance obligations in the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations in the contract; and ● Recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within the contract and determines the performance obligations and assesses whether each promised good or service is distinct. The Company evaluates each performance obligation to determine if it is satisfied at a point in time or over time. See Note 3. Nature of Products and Services The Company derives its revenues mainly from sales of chipsets and prototype radar systems to be installed onto automotive vehicles and professional services. Revenue from chipsets and prototype radar systems is recognized at the point in time when the control of the goods is transferred to the customer, generally upon delivery, and the Company has no remaining performance obligations. Right of Return The Company’s general terms and conditions for its contracts do not contain a right of return that allows the customer to return products and receive a credit. Therefore, the Company does not estimate returns and generally recognizes revenue at contract price upon product delivery. Deferred Revenue Deferred revenues, which represent a contract liability, where the Company has an obligation to transfer goods or services to the customer for which it received consideration from the customer. q. Cost of revenues: Cost of revenue includes the manufacturing cost of radar sensors and chipsets, which primarily consists of components cost, assembly costs and personnel-related costs directly associated with our customer support personnel. r. Research and development expenses, net: Research and development costs, net of grants received, are charged to the consolidated statement of operations as incurred. s. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. This standard prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial statement carrying amount and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the tax benefit from a tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount that is greater than 50 percent likely of being realized upon settlement with the taxing authority using the facts, circumstances, and information available at the reporting date. t. Contingent Liabilities The Company accounts for its contingent liabilities in accordance with ASC No. 450, “Contingencies.” A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2023 and 2022, the Company is not a party to any litigation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. u. Leases: On January 1, 2022, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02) relating to the accounting treatment of lease obligations, using the modified retrospective method. The Company elected the package of practical expedients permitted under the transition guidance. The Company also elected not to recognize a lease liability and a right-of-use (“ROU”) asset on the balance sheet for leases with a term of twelve months or less. The Company recognizes the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Under Topic 842, the Company determines if an arrangement is a lease at inception. ROU assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers fixed and determinable payments at the time of commencement. As most of the Company leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. The ROU asset is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Payments under the Company’s lease agreements are primarily fixed, however, certain lease agreements contain variable costs such as common area maintenance, real estate taxes, and insurance are not included in the lease liability and are recognized as they are incurred. See Note 6. v. Impact of recently issued accounting standard: In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (“ASC 326”): Measurement of Credit Losses on Financial Instruments to introduce a new model for recognizing credit losses on financial instruments based on estimated current expected credit losses, or CECL. Under the new standard, an entity is required to estimate CECL on trade receivables at inception, based on historical information, current conditions, and reasonable and supportable forecasts. The guidance is effective for the Company for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Early application is permitted. The Company adopted ASC 326 on January 1, 2023, and there was no material impact on the Company’s consolidated balance sheet and the consolidated statements of operations upon adoption. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue [Abstract] | |
REVENUE | NOTE 3:- REVENUE Disaggregation of Revenues Revenue disaggregated by geography for the years ended December 31, 2023, 2022 and 2021, based on the billing address of the Company’s customers, consists of the following: Year ended December 31, 2023 2022 2021 Revenue % of Revenue Revenue % of Revenue Revenue % of Revenue Revenue by geography: China $ 639 43.5 % $ 1,476 42.0 % $ 702 31.2 % Hong Kong 266 18.1 % - - 35 1.6 % Sweden 247 16.8 % 1,276 36.3 % 928 41.2 % USA 148 10.1 % 135 3.8 % 63 2.8 % Germany 81 5.5 % 284 8.1 % 351 15.6 % Israel 50 3.4 % 25 0.7 % 34 1.5 % Italy - - 124 3.5 % - - Switzerland - - 197 5.6 % 53 2.4 % Other 39 2.6 % - - 83 3.7 % Total revenue $ 1,470 100 % $ 3,517 100 % $ 2,249 100 % Contract Liabilities Contract liabilities consist of deferred revenue and customer advanced payments. Deferred revenue includes billings in excess of revenue recognized related to product sales and is recognized as revenue when the Company performs under the contract. Customer advanced payments represent required customer payments in advance of product shipments according to customer’s payment term. Customer advance payments are recognized as revenue when control of the performance obligation is transferred to the customer. Contract liabilities presented as deferred revenue amounted to $0 and $351 as of December 31, 2023 and 2022, respectively. Remaining Performance Obligation The Company’s remaining performance obligations are comprised of product and services revenue not yet performed. As of December 31, 2023 and 2022 the aggregate amount of the transaction price allocated to remaining performance obligations was $977 and $232, respectively. The Company expects to recognize 2023 remaining performance obligations as revenue during 2024. |
Prepaid Expenses and Other Rece
Prepaid Expenses and Other Receivables | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Receivables [Abstract] | |
PREPAID EXPENSES AND OTHER RECEIVABLES | NOTE 4:- PREPAID EXPENSES AND OTHER RECEIVABLES December 31, 2023 2022 Government authorities $ 385 $ 280 Deposits 69 85 Grants receivable 310 319 Prepaid expenses and other 1,262 1,155 $ 2,026 $ 1,839 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Note 5:- Property and Equipment December 31, 2023 2022 Cost: Computers and peripheral equipment $ 2,448 $ 2,350 Leasehold improvement 582 438 Office furniture and equipment 133 128 Vehicles 149 139 3,312 3,055 Accumulated depreciation 2,003 1,446 Property and equipment, net $ 1,309 $ 1,609 Depreciation expense for the years ended December 31, 2023, 2022 and 2021 was $557, $481 and $342, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | Note 6:- LEASES The Company has five non-cancelable operating lease agreements for certain office spaces in Israel. The leases have original lease periods expiring until 2027, some of which may include options to extend the leases for up to three additional years. The Company does not assume renewals in its determination of the lease term unless the renewals are considered as reasonably certain to exercise. Supplemental cash flow information related to leases was as follows: Year ended December 31, 2023 2022 Cash payments and expenses related to operating leases $ (451 ) $ (370 ) Operating lease right-of-use assets and liabilities, net 2 (84 ) Maturities of lease liabilities as of December 31, 2023, were as follows: 2024 $ 443 2025 393 2026 356 2027 and after 1,033 Total lease payments 2,225 Less imputed interest 483 Total lease liabilities $ 1,742 Supplemental balance sheet information related to operating leases were as follows: December 31, December 31, 2023 202 2 Operating lease right-of-use assets $ 1,740 $ 465 Current maturities of operating leases $ 436 $ 364 Long-term operating lease liabilities $ 1,306 $ 17 Weighted average remaining lease term (in years) 5.5 1.1 Weighted average discount rate 9.4 % 5.8 % |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingent Liabilities [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | Note 7:- COMMITMENTS AND CONTINGENT LIABILITIES The Company participated in programs sponsored mainly by the Israeli Innovation Authority (“IIA”), an Israeli government agency, for the support of its research and development activities. Through December 31, 2023, the Company had obtained grants aggregating to $3,846 for certain of its research and development projects. The Company is obligated to pay royalties to the IIA, amounting to 4% of the sales of the products and other related revenues generated from such projects. The maximum aggregate royalties paid generally cannot exceed 100% of the grants received, plus annual interest generally equal to 12-months SOFR applicable to dollar deposits, as published on the first business day of each calendar year. The obligation to pay these royalties is contingent on sales of the products and in the absence of such sales, no payment is required. |
Warrants Liabilities
Warrants Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Warrants Liabilities [Abstract] | |
WARRANTS LIABILITIES | Note 8:- warrants liabilities The Company issued in 2019 warrants to purchase a number of convertible Series B-1 convertible preferred shares, for an aggregate exercise price of $550. As a result of the Merger and the related Recapitalization, the warrants became convertible into the Company’s ordinary shares. The Company classified the warrants as freestanding and treated as liability pursuant to ASC 480 and remeasured every reporting period with any change to fair value recorded within financial expenses in the statements of operations. As a result of the Merger, the Company assumed a derivative warrant liability related to 3,112,080 private placement warrants assumed by the Company pursuant to the terms of the Merger. The Company utilizes a Black-Scholes option pricing model to estimate the fair value of the private placement warrants and the convertible warrants (hereinafter: the “warrants”) and are considered a Level 3 fair value measurement. Black-Scholes option pricing model takes into consideration certain parameters in computation of the fair value of the warrants which the significant parameter is expected volatility. The Company computed a sensitivity analysis of the fair value to changes of the expected volatility. The volatility impact of +/-5% on the warrants’ fair value is approximately $180. The warrants are measured at each reporting period, with changes in fair value recognized in the statement of operations. During 2023, 2022 and 2021, the Company recognized ($756), ($8,425) and $3,083, respectively, with respect with those warrants as a finance expenses (income). |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders’ Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | Note 9:- Shareholders’ equity a. In connection with the Merger, the Company adopted its restated articles, pursuant to which the Company’s authorized capital consisted of 130,000,000 Ordinary Shares, with a par value of NIS 0.000216 per share and the Company effected a 1:46.25783 stock split. b. During June 2023, the Company raised $23,000 with Special Situations Funds, pursuant to which the Company issued a total of 11,794,873 Ordinary Shares with a purchase price of $1.95 per share. Existing investors, including two affiliates of Arbe’s directors also participated in this offering. The aggregate net proceeds received by the Company from the offering were $22,496 net of issuance costs. c. Share option and RSU’s: During 2016, the Company adopted the 2016 Share Incentive Plan (the “2016 Plan”) which provides the Company with the ability to grant its employees, directors and service providers options to purchase Ordinary Shares of the Company, at a purchase price as determined by the Board of Directors at the date of grant. Pursuant to the 2016 Plan, 3,384,454 Ordinary Shares were reserved for issuance. Each option granted under the Plan expires no later than seven years from the date of grant or 60 days after termination of engagement. The vesting period of the share options is generally four years. In August 2021, the Board of the Company approved and in September 2021 the shareholders approved, the Arbe Robotics Ltd. 2021 Equity Incentive Plan (the “2021 Plan”) which became effective on October 7, 2021. The 2021 Plan covers (a) 4,079,427 ordinary shares plus (b) and without the need to further amend the Plan on January 1 of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031, a number of Shares equal to the lesser of: (i) 5% of the total number of ordinary shares outstanding on December 31 of the immediately preceding calendar year, and (ii) an amount determined by the Board, if so determined prior to the January 1 of the calendar year in which the increase will occur. Upon the adoption of the 2021 Plan, the Company will no longer grant any awards under the 2016 Plan, although previously granted options under the 2016 Plan will remain outstanding and governed by the 2016 Plan and awards available for grant under the 2016 Plan which had not been issued or which expired unexercised may be issued pursuant to the 2021 Plan. The vesting period of the awards is generally four years. Generally, under the terms of the Plans, unless determined otherwise, 25% of an award granted becomes exercisable on the first anniversary of the date of grant and 6.25% becomes exercisable once every quarter during the subsequent three years. Share option and RSU’s plans: A summary of the stock option activity under the Company’s equity plans during the years ended December 31, 2023, 2022 and 2021 is as follows: Outstanding share options Weighted-average exercise Weighted average remaining contractual Aggregate intrinsic value ($ in thousands) Options: Outstanding as of December 31, 2020 3,768,034 0.767 4.626 119,146 Granted 1,966,916 7.250 Forfeited (117,863 ) 0.972 Exercised (155,750 ) 0.602 Outstanding as of December 31, 2021 5,461,337 3.102 5.363 16,713,971 Granted 1,630,142 6.833 Forfeited (468,814 ) 5.557 Exercised (570,451 ) 0.482 Outstanding as of December 31, 2022 6,052,214 4.166 5.570 7,761,705 Granted 430,874 2.728 Forfeited (351,671 ) 7.767 Exercised (1,074,162 ) 0.654 Outstanding as of December 31, 2023 5,057,255 4.543 5.662 2,352,517 Exercisable as of December 31, 2023 3,210,191 3.643 4.403 2,277,303 Options available for future grants 611,246 A summary of the Company’s RSUs activity during the years ended December 31, 2023, 2022 and 2021 is as follows: Numbers of RSUs RSUs: Outstanding as of January 1, 2021 - Granted 1,968,794 Forfeited - Vested - Outstanding as of December 31, 2021 1,968,794 Granted 1,619,898 Forfeited (417,025 ) Vested (573,583 ) Outstanding as of December 31, 2022 2,598,084 Granted 2,908,983 Forfeited (370,067 ) Vested (895,170 ) Outstanding as of December 31, 2023 4,241,830 Fair value factors: The following table sets forth the parameters used in computation of the options compensation to employees and service providers: Year ended December 31 2023 2022 2021 Expected term, in years 5.82 4.41-6.11 4.61-6.11 Expected volatility 47%-51.75% 47%-48% 42%-46% Risk-free interest rate 4.15%-4.55% 1.74%-3.96% 0.49%-1.28% Expected dividend yield 0 0 0 Fair value: Prior to the Merger, which resulted in the Company becoming a public entity, in determining the fair value for share options granted, the board of directors considered the fair value of the ordinary shares as of each grant date. The fair value of the ordinary shares underlying the share options was determined by the board of directors at each award grant date based upon a variety of factors, including the results obtained from independent third-party valuations, the Company’s financial position and historical financial performance, the status of technological developments within the Company’s products, the composition and ability of the current management team, an evaluation or benchmark of the Company’s competition, the current business climate in the marketplace, the illiquid nature of the ordinary shares, arm’s length sales of the Company’s capital stock, the effect of the rights and preferences of the Company’s preferred shareholders, and the prospects of a liquidity event, among others. Subsequent to the Company becoming a public entity, the fair value of the Ordinary Shares is the market price of the Ordinary Shares on the date of grant. Expected volatility: As the Company was privately owned until October 2021, there is not sufficient historical volatility for the expected term of the stock options. Therefore, the Company uses an average historical share price volatility based on an analysis of reported data for a peer group of comparable publicly traded companies which were selected based upon industry similarities. Expected term (years): Expected term represents the period that the Company’s option grants are expected to be outstanding. There is not sufficient historical share exercise data to calculate the expected term of the stock options. Therefore, the Company elected to utilize the simplified method to value option grants. Under this approach, the weighted-average expected life is presumed to be the average of the shortest vesting term and the contractual term of the option. Risk-free interest rate: The Company determined the risk-free interest rate by using a weighted-average equivalent to the expected term based on the U.S. Treasury yield curve in effect as of the date of grant. Expected dividend yield: The Company does not anticipate paying any dividends in the foreseeable future. Thus, the Company used 0% as its expected dividend yield. The following table presents stock-based compensation expense to employees included in the Company’s consolidated statements of operations: Year ended December 31, 2023 2022 2021 Research and development $ 8,721 $ 5,726 $ 1,518 Sales and marketing 2,229 1,403 217 General and administrative 1,786 1,537 419 Cost of revenues 276 127 57 Total stock-based compensation expense $ 13,012 $ 8,793 $ 2,211 Share based compensation expenses are not deductible for income tax purposes, and therefore the Company did not recognize any tax benefits related to the share-based compensation for the years ended December 31, 2023, 2022 and 2021. The Company adopted ASU 2018-07 and accordingly measured at the grant dates of each of the above stock-based compensation issued to service providers their fair value using Black and Scholes model, which requires inputs such as exercise price, estimated ordinary share price, expected dividend yield, estimated ordinary share price volatility and risk-free interest rate. During 2023, 2022 and 2021, the Company recognized the total fair value of the stock-based compensation of development related service providers in the amounts of $629, $354 and $115, respectively. |
Net Loss Per Share Attributible
Net Loss Per Share Attributible to Ordinary Sharholders | 12 Months Ended |
Dec. 31, 2023 | |
Net Loss Per Share Attributible to Ordinary Sharholders [Abstract] | |
NET LOSS PER SHARE ATTRIBUTIBLE TO ORDINARY SHARHOLDERS | NOTE 10:- NET LOSS PER SHARE ATTRIBUTIBLE TO ORDINARY SHARHOLDERS The following table sets forth the computation of basic and diluted net loss per share attributable to ordinary shareholders for the periods presented: Year ended December 31, 2023 2022 2021 Basic Numerator: Net loss $ (43,500 ) $ (40,494 ) $ (58,092 ) Denominator: Weighted-average shares used in computing loss per share attributable to ordinary shareholders, basic 72,021,520 63,489,983 22,027,292 Loss per share attributable to ordinary shareholders, basic $ (0.60 ) $ (0.64 ) $ (2.64 ) Diluted Numerator: Adjusted Net loss* $ (44,256 ) $ (48,919 ) $ (58,092 ) Denominator: Weighted-average shares used in computing loss per share attributable to ordinary shareholders, diluted 62,390,302 60,960,641 22,027,292 Loss per share attributable to ordinary shareholders, diluted* $ (0.71 ) $ (0.80 ) $ (2.64 ) * Loss per share attributable to ordinary shareholders, diluted, was adjusted and take into consideration warrants liabilities revaluations as part of our net loss for 2023 and 2022. Year ended December 31, 2023 2022 Net loss (43,500 ) (40,494 ) Revaluation of warrants (756 ) (8,425 ) Adjusted Net loss (44,256 ) (48,919 ) The potential Ordinary Shares that were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the years ended December 31, 2023, 2022 and 2021 because including them would have been anti-dilutive are as follows: Year ended December 31, 2023 2022 2021 Convertible preferred shares - - 26,499,069 Outstanding share options 9,299,085 8,650,298 1,362,786 Total 9,299,085 8,650,298 27,861,855 |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2023 | |
Taxes on Income [Abstract] | |
TAXES ON INCOME | NOTE 11:- TAXES ON INCOME a. General: Israeli tax rate: The Corporate tax rate in Israel relevant to the Company in 2021, 2022 and 2023 - 23%. United States: The Company’s subsidiaries are separately taxed under the U.S. tax laws at a corporate rate of 21%. b. Loss before income taxes: The following are the domestic (i.e. Israeli) and foreign components of the Company’s loss before income taxes: Year ended December 31, 2023 2022 2021 Domestic $ (43,500 ) $ (40,494 ) $ (58,092 ) Foreign - - - Total $ (43,500 ) $ (40,494 ) $ (58,092 ) c. Taxes on income: The reconciliation of the income tax benefit that would result from applying the Israeli statutory tax rate to the Company’s reported income tax (benefit) is as follows: Year ended December 31, 2023 2022 2021 Loss before income taxes, as reported in the consolidated statements of operations $ 43,500 $ 40,494 $ 58,092 Statutory tax rate 23 % 23 % 23 % Income tax benefit at statutory tax rate $ (10,005 ) $ (9,314 ) $ (13,361 ) Effect of Non-deductible expenses 3,063 475 6,129 Remeasurement of deferred taxes from currency exchange* - 3,517 209 Change in valuation allowance 7,508 5,322 7,023 Other (566 ) - - Reported income taxes benefit $ - $ - $ - * The income Tax Regulations (rules regarding ledger management of foreign invested companies and certain partnerships and the determination of their taxable income), 1986 allow Foreign Invested Companies (i.e., foreign holding percentage of more than 25%) to report for tax purposes in US dollars. The Company implemented these regulations on January 1, 2023. d. Net operating loss carryforward: As of December 31, 2023, the Company had a net operating loss carryforward for Israeli tax purposes of approximately $121,880. These net operating loss carryforwards can be carried forward and offset against taxable income indefinitely. e. Deferred tax assets and liabilities: Deferred tax assets and liabilities are recognized for the 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 and for carryforwards. The principal components of the Company’s deferred tax assets are as follows: December 31 2023 2022 Deferred tax assets: Net operating loss carry forwards $ 28,032 $ 21,991 Research and development 6,252 4,834 Employees and payroll accrual 299 272 Property and equipment 79 57 Total deferred tax assets 34,662 27,154 Valuation allowance (34,662 ) (27,154 ) Deferred tax assets, net of valuation allowance $ - $ - 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. f. Tax assessments: The Israeli entity’s’ income tax assessments are considered final through 2018 . g. Unrecognized Tax Benefits: As of December 31, 2023, 2022 and 2021, the Company did not have any unrecognized tax benefits and does not expect that the amount of unrecognized tax benefits will change significantly within the next 12 months. The Company’s accounting policy is to accrue interest and penalties related to an underpayment of income taxes as a component of income tax expense. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | NOTE 12:- SEGMENT INFORMATION The Company operates in one operating and reportable segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the Company’s chief executive officer (“ CEO Revenue by geographical region can be found in the revenue recognition disclosures in Note 3 The following table presents the Company’s property and equipment, net of depreciation, by geographic region: December 31, 202 3 202 2 Israel $ 1,309 $ 1,609 United States - - Total property and equipment, net: $ 1,309 $ 1,609 *) Represents less than $1 Major Customers: During the year ended December 31, 2023, the Company had three customers that accounted for 38.9%, 18.1% and 12.7%, respectively, of revenues. During the year ended December 31, 2022, the Company had three customers that accounted for 33.4%, 19.4% and 18.9%, respectively, of revenues. During the year ended December 31, 2021, the Company had three customers that accounted for 41.1%, 31.2% and 15.6%, respectively, of revenues. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (43,500) | $ (40,494) | $ (58,092) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies [Abstract] | |
Basis of presentation | a. Basis of presentation: The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP). The significant accounting policies followed in the preparation of the financial statements applied on a consistent basis for all years presented in these financial statements. The consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | b. Use of estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions including fair value of warrants, share-based compensation and the underlying fair value of the Company’s Ordinary Shares issued prior to the Merger. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates. |
Consolidated financial statements in U.S. dollars | c. Consolidated financial statements in U.S. dollars: A substantial portion the Company’s activity including transactions with customers, as well as equity transactions and cash investments, are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the currency of the primary economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S. dollar. A subsidiary’s functional currency is the currency of the primary economic environment in which the subsidiary operates; normally, that is the currency of the environment in which a subsidiary primarily generates and expends cash. In making the determination of the appropriate functional currency for a subsidiary, the Company considers cash flow indicators, local market indicators, financing indicators and the subsidiary’s relationship with both the parent company and other subsidiaries. The Company has determined the functional currency of its U.S. subsidiaries to be the U.S. Dollar. Monetary accounts maintained in currencies other than the U.S. dollar are remeasured into U.S. dollars in accordance with Statement of the Accounting Standard Codification (“ASC”) No. 830 “Foreign Currency Matters” (“ASC No. 830”). All transaction gains and losses of the remeasured monetary balance sheet items are reflected in the statements of operations as financial income or expenses as appropriate. Transactions in foreign currency are translated into dollars in accordance with the principles set forth in ASC Subtopic 830-20, Foreign Currency Transaction |
Concentration of credit risk | d. Concentration of credit risk: Most of the Company’s cash and cash equivalents, restricted cash and short-term deposits were deposited with Israeli banks and were comprised mainly of cash deposits and short-term deposits. The Company’s trade receivables are derived from customers located globally. The Company mitigates its credit risks by performing credit evaluations of its customers’ financial conditions and requires customer advance payments in certain circumstances. The Company generally does not require collateral. |
Cash and cash equivalents and restricted cash | e. Cash and cash equivalents and restricted cash: The Company considers all highly liquid short-term deposits with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of amounts invested in short-term deposits. Restricted cash consists of deposits at a financial institution that serves as collateral for a credit card agreement and lease agreements. |
Short term deposits | f. Short term deposits: Short-term deposits are bank deposits with an original maturity of more than three months and less than one year from the date of acquisition. The deposits are presented according to their terms of deposit. As of December 31, 2023, these bank deposit bearing annual interest rates in the range of 4%-6%, |
Fair value of financial instruments | g. Fair value of financial instruments: The estimated fair value of financial instruments has been determined by the Company using available market information and valuation methodologies. Considerable judgment is required in estimating fair values. Accordingly, the estimates may not be indicative of the amounts the Company could realize in a current market exchange. The following methods and assumptions were used by the Company in estimating the fair value of their financial instruments: The carrying values of cash and cash equivalents, short-term deposits, restricted cash, trade receivables, other current assets, trade payables, employees and payroll accruals, accrued expenses and other current liabilities approximate their fair values due to the short-term maturities of these instruments. The Company applies ASC No. 820, “Fair Value Measurements and Disclosures” (“ASC No. 820”), with respect to fair value measurements of all financial assets and liabilities. In accordance with ASC No. 820, the Company measures its short-term deposits and warrant liability at fair value. Short-term deposits are classified within Level 1 because these assets are valued using quoted market prices. Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: ● 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. ● Level 3—Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Pursuant to the Merger, the Company (i) assumed a derivative warrant liability related to Company’s warrants that were issued to the holders of private placement warrants that had been issued by ITAC in connection with its initial public offering, and (ii) issued equity instrument in connection with warrants that had been issued as part of ITAC’s initial public offering and pursuant to the Merger became warrants to purchase the Company’s Ordinary Shares. The fair value of the Company’s public warrants is measured based on the market price of such warrants and are considered a Level 1 fair value measurement. The Company utilizes a Black-Scholes option pricing model to estimate the fair value of the private placement warrants which are considered a Level 3 fair value measurement. The Company’s private warrants are measured at each reporting period, with changes in fair value recognized in the statement of operations. See Note 8. |
Trade Receivables | h. Trade Receivables Trade receivables are recorded at the invoiced amount and do not bear interest. Trade receivables are periodically assessed for allowance for doubtful accounts, which is the Company’s best estimate of the amount of credit losses with respect to its existing trade receivable. The Company’s accounts receivables accounting policy from January 1, 2023, following the adoption of the new current expected credit losses (“CECL”) standard: The Company estimates CECL on trade receivables at inception for estimated losses resulting from the inability of the Company’s customers to make required payments, based on estimated current expected credit losses. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering historical information, current market conditions and reasonable and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. The allowance for credit losses was not material for the years ended December 31, 2023, 2022 and 2021. |
Property and equipment | i. Property and equipment: Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in income. Repair and maintenance costs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers and peripheral equipment 15-33 Office furniture and equipment 7-15 Vehicles 15 Leasehold improvement (*) (*) Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the improvements. |
Impairment of long-lived assets | j. Impairment of long-lived assets: Long-lived assets are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment” a (“ASC 360”), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment exists when the carrying value of the asset exceeds the aggregate undiscounted cash flows expected to be generated by the asset. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. During the years ended December 31, 2023, 2022 and 2021, no impairment losses were identified. |
Accrued post-employment benefit | k. Accrued post-employment benefit: The employees of Arbe Ltd. are included under section 14 of the Israeli Severance Compensation Act, 1963 (“Section 14”). Pursuant to Section 14, the Company’s Israeli employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, deposited on their behalf to their chosen insurance funds. By making the payments in accordance with Section 14, the Company is released from any future severance payments in respect of those employees. The obligation to make the monthly deposits is expensed as incurred. The deposits pursuant to Section 14 are not recorded as an asset in the consolidated balance sheet, and there is no liability recorded as the Company does not have a future obligation to make any additional payments. Severance costs amounted to approximately $1,166, $1,240 and $826 for the years ended December 31, 2023, 2022 and 2021, respectively. One of the Company’s U.S. Subsidiaries has a 401(k) defined contribution plan covering one employee in the U.S. The expenses recorded by the U.S. subsidiaries for matching contributions for the years ended December 31, 2023, 2022 and 2021 were immaterial. |
Stock-based compensation | l. Stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation - Stock Compensation”, which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees, nonemployees and directors. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the Company’s statements of operations over the applicable service periods. The Company measures its share-based payment awards made to employees, directors, and non-employee service providers based on estimated fair values. The fair value of each option award is estimated on the grant date using the Black-Scholes option pricing model which requires several assumptions, of which the most significant are the expected share price volatility and the expected option term. The Company recognizes forfeitures of equity-based awards as they occur. For graded vesting awards, the Company recognizes compensation expenses based on the straight-line method over the applicable service period. |
Net loss per share attributable to ordinary shareholders | m. Net loss per share attributable to ordinary shareholders: The Company computes net loss per share using the two-class method required for participating securities. The two-class method requires income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considered its convertible preferred shares, which were outstanding through October 7, 2021, the date of the closing of the Merger, to be participating securities as the holders of the convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares, equal to the higher of their original issue price pro-rata basis assuming conversion of all convertible preferred shares into ordinary shares and that there are no preferences to any holders of any shares. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss for the periods presented was not allocated to the Company’s participating securities. The Company’s basic net loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury share method or the if-converted method based on the nature of such securities. Diluted net loss per share is the same as basic net loss per share in periods when the effects of potentially dilutive shares of ordinary shares are anti-dilutive. See Note 10. |
Other Comprehensive loss | n. Other Comprehensive loss: The Company has no components of comprehensive loss other than net loss. Thus, comprehensive loss is the same as net loss for the periods presented. |
Revenue recognition | p. Revenue recognition: The Company follows the provisions of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), which apply to all contracts with customers. Under Topic 606, revenues are recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine the appropriate revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: Identify the contract(s) with a customer; ● Identify the performance obligations in the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations in the contract; and ● Recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within the contract and determines the performance obligations and assesses whether each promised good or service is distinct. The Company evaluates each performance obligation to determine if it is satisfied at a point in time or over time. See Note 3. Nature of Products and Services The Company derives its revenues mainly from sales of chipsets and prototype radar systems to be installed onto automotive vehicles and professional services. Revenue from chipsets and prototype radar systems is recognized at the point in time when the control of the goods is transferred to the customer, generally upon delivery, and the Company has no remaining performance obligations. Right of Return The Company’s general terms and conditions for its contracts do not contain a right of return that allows the customer to return products and receive a credit. Therefore, the Company does not estimate returns and generally recognizes revenue at contract price upon product delivery. Deferred Revenue Deferred revenues, which represent a contract liability, where the Company has an obligation to transfer goods or services to the customer for which it received consideration from the customer. |
Cost of revenues | q. Cost of revenues: Cost of revenue includes the manufacturing cost of radar sensors and chipsets, which primarily consists of components cost, assembly costs and personnel-related costs directly associated with our customer support personnel. |
Research and development expenses, net | r. Research and development expenses, net: Research and development costs, net of grants received, are charged to the consolidated statement of operations as incurred. |
Income taxes | s. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. This standard prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial statement carrying amount and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the tax benefit from a tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount that is greater than 50 percent likely of being realized upon settlement with the taxing authority using the facts, circumstances, and information available at the reporting date. |
Contingent Liabilities | t. Contingent Liabilities The Company accounts for its contingent liabilities in accordance with ASC No. 450, “Contingencies.” A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2023 and 2022, the Company is not a party to any litigation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. |
Leases | u. Leases: On January 1, 2022, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02) relating to the accounting treatment of lease obligations, using the modified retrospective method. The Company elected the package of practical expedients permitted under the transition guidance. The Company also elected not to recognize a lease liability and a right-of-use (“ROU”) asset on the balance sheet for leases with a term of twelve months or less. The Company recognizes the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Under Topic 842, the Company determines if an arrangement is a lease at inception. ROU assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers fixed and determinable payments at the time of commencement. As most of the Company leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. The ROU asset is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Payments under the Company’s lease agreements are primarily fixed, however, certain lease agreements contain variable costs such as common area maintenance, real estate taxes, and insurance are not included in the lease liability and are recognized as they are incurred. See Note 6. |
Impact of recently issued accounting standard | v. Impact of recently issued accounting standard: In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (“ASC 326”): Measurement of Credit Losses on Financial Instruments to introduce a new model for recognizing credit losses on financial instruments based on estimated current expected credit losses, or CECL. Under the new standard, an entity is required to estimate CECL on trade receivables at inception, based on historical information, current conditions, and reasonable and supportable forecasts. The guidance is effective for the Company for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Early application is permitted. The Company adopted ASC 326 on January 1, 2023, and there was no material impact on the Company’s consolidated balance sheet and the consolidated statements of operations upon adoption. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies [Abstract] | |
Schedule of the Straight-Line Method Over the Estimated Useful Lives of the Assets | Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers and peripheral equipment 15-33 Office furniture and equipment 7-15 Vehicles 15 Leasehold improvement (*) (*) Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the improvements. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue [Abstract] | |
Schedule of Revenue Disaggregated by Geography | Revenue disaggregated by geography for the years ended December 31, 2023, 2022 and 2021, based on the billing address of the Company’s customers, consists of the following: Year ended December 31, 2023 2022 2021 Revenue % of Revenue Revenue % of Revenue Revenue % of Revenue Revenue by geography: China $ 639 43.5 % $ 1,476 42.0 % $ 702 31.2 % Hong Kong 266 18.1 % - - 35 1.6 % Sweden 247 16.8 % 1,276 36.3 % 928 41.2 % USA 148 10.1 % 135 3.8 % 63 2.8 % Germany 81 5.5 % 284 8.1 % 351 15.6 % Israel 50 3.4 % 25 0.7 % 34 1.5 % Italy - - 124 3.5 % - - Switzerland - - 197 5.6 % 53 2.4 % Other 39 2.6 % - - 83 3.7 % Total revenue $ 1,470 100 % $ 3,517 100 % $ 2,249 100 % |
Prepaid Expenses and Other Re_2
Prepaid Expenses and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Receivables [Abstract] | |
Schedule of Prepaid Expenses and Other Receivables | December 31, 2023 2022 Government authorities $ 385 $ 280 Deposits 69 85 Grants receivable 310 319 Prepaid expenses and other 1,262 1,155 $ 2,026 $ 1,839 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | December 31, 2023 2022 Cost: Computers and peripheral equipment $ 2,448 $ 2,350 Leasehold improvement 582 438 Office furniture and equipment 133 128 Vehicles 149 139 3,312 3,055 Accumulated depreciation 2,003 1,446 Property and equipment, net $ 1,309 $ 1,609 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Year ended December 31, 2023 2022 Cash payments and expenses related to operating leases $ (451 ) $ (370 ) Operating lease right-of-use assets and liabilities, net 2 (84 ) |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2023, were as follows: 2024 $ 443 2025 393 2026 356 2027 and after 1,033 Total lease payments 2,225 Less imputed interest 483 Total lease liabilities $ 1,742 |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases were as follows: December 31, December 31, 2023 202 2 Operating lease right-of-use assets $ 1,740 $ 465 Current maturities of operating leases $ 436 $ 364 Long-term operating lease liabilities $ 1,306 $ 17 Weighted average remaining lease term (in years) 5.5 1.1 Weighted average discount rate 9.4 % 5.8 % |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders’ Equity [Abstract] | |
Schedule of Stock Option Activity | A summary of the stock option activity under the Company’s equity plans during the years ended December 31, 2023, 2022 and 2021 is as follows: Outstanding share options Weighted-average exercise Weighted average remaining contractual Aggregate intrinsic value ($ in thousands) Options: Outstanding as of December 31, 2020 3,768,034 0.767 4.626 119,146 Granted 1,966,916 7.250 Forfeited (117,863 ) 0.972 Exercised (155,750 ) 0.602 Outstanding as of December 31, 2021 5,461,337 3.102 5.363 16,713,971 Granted 1,630,142 6.833 Forfeited (468,814 ) 5.557 Exercised (570,451 ) 0.482 Outstanding as of December 31, 2022 6,052,214 4.166 5.570 7,761,705 Granted 430,874 2.728 Forfeited (351,671 ) 7.767 Exercised (1,074,162 ) 0.654 Outstanding as of December 31, 2023 5,057,255 4.543 5.662 2,352,517 Exercisable as of December 31, 2023 3,210,191 3.643 4.403 2,277,303 Options available for future grants 611,246 |
Schedule of RSUs Activity | A summary of the Company’s RSUs activity during the years ended December 31, 2023, 2022 and 2021 is as follows: Numbers of RSUs RSUs: Outstanding as of January 1, 2021 - Granted 1,968,794 Forfeited - Vested - Outstanding as of December 31, 2021 1,968,794 Granted 1,619,898 Forfeited (417,025 ) Vested (573,583 ) Outstanding as of December 31, 2022 2,598,084 Granted 2,908,983 Forfeited (370,067 ) Vested (895,170 ) Outstanding as of December 31, 2023 4,241,830 |
Schedule of Compensation to Employees | The following table sets forth the parameters used in computation of the options compensation to employees and service providers: Year ended December 31 2023 2022 2021 Expected term, in years 5.82 4.41-6.11 4.61-6.11 Expected volatility 47%-51.75% 47%-48% 42%-46% Risk-free interest rate 4.15%-4.55% 1.74%-3.96% 0.49%-1.28% Expected dividend yield 0 0 0 |
Schedule of Share Based Compensation Expense | The following table presents stock-based compensation expense to employees included in the Company’s consolidated statements of operations: Year ended December 31, 2023 2022 2021 Research and development $ 8,721 $ 5,726 $ 1,518 Sales and marketing 2,229 1,403 217 General and administrative 1,786 1,537 419 Cost of revenues 276 127 57 Total stock-based compensation expense $ 13,012 $ 8,793 $ 2,211 |
Net Loss Per Share Attributib_2
Net Loss Per Share Attributible to Ordinary Sharholders (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net Loss Per Share Attributible to Ordinary Sharholders [Abstract] | |
Schedule of Sets Forth the Computation of Basic and Diluted Net Loss Per Share Attributable | The following table sets forth the computation of basic and diluted net loss per share attributable to ordinary shareholders for the periods presented: Year ended December 31, 2023 2022 2021 Basic Numerator: Net loss $ (43,500 ) $ (40,494 ) $ (58,092 ) Denominator: Weighted-average shares used in computing loss per share attributable to ordinary shareholders, basic 72,021,520 63,489,983 22,027,292 Loss per share attributable to ordinary shareholders, basic $ (0.60 ) $ (0.64 ) $ (2.64 ) Diluted Numerator: Adjusted Net loss* $ (44,256 ) $ (48,919 ) $ (58,092 ) Denominator: Weighted-average shares used in computing loss per share attributable to ordinary shareholders, diluted 62,390,302 60,960,641 22,027,292 Loss per share attributable to ordinary shareholders, diluted* $ (0.71 ) $ (0.80 ) $ (2.64 ) * Loss per share attributable to ordinary shareholders, diluted, was adjusted and take into consideration warrants liabilities revaluations as part of our net loss for 2023 and 2022. Year ended December 31, 2023 2022 Net loss (43,500 ) (40,494 ) Revaluation of warrants (756 ) (8,425 ) Adjusted Net loss (44,256 ) (48,919 ) |
Schedule of Ordinary Shares that were Excluded from the Computation of Diluted Net Loss Per Share | The potential Ordinary Shares that were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the years ended December 31, 2023, 2022 and 2021 because including them would have been anti-dilutive are as follows: Year ended December 31, 2023 2022 2021 Convertible preferred shares - - 26,499,069 Outstanding share options 9,299,085 8,650,298 1,362,786 Total 9,299,085 8,650,298 27,861,855 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Taxes on Income [Abstract] | |
Schedule of Company’s Loss Before Income Taxes | The following are the domestic (i.e. Israeli) and foreign components of the Company’s loss before income taxes: Year ended December 31, 2023 2022 2021 Domestic $ (43,500 ) $ (40,494 ) $ (58,092 ) Foreign - - - Total $ (43,500 ) $ (40,494 ) $ (58,092 ) |
Schedule of Reconciliation Income Tax Benefit | The reconciliation of the income tax benefit that would result from applying the Israeli statutory tax rate to the Company’s reported income tax (benefit) is as follows: Year ended December 31, 2023 2022 2021 Loss before income taxes, as reported in the consolidated statements of operations $ 43,500 $ 40,494 $ 58,092 Statutory tax rate 23 % 23 % 23 % Income tax benefit at statutory tax rate $ (10,005 ) $ (9,314 ) $ (13,361 ) Effect of Non-deductible expenses 3,063 475 6,129 Remeasurement of deferred taxes from currency exchange* - 3,517 209 Change in valuation allowance 7,508 5,322 7,023 Other (566 ) - - Reported income taxes benefit $ - $ - $ - * The income Tax Regulations (rules regarding ledger management of foreign invested companies and certain partnerships and the determination of their taxable income), 1986 allow Foreign Invested Companies (i.e., foreign holding percentage of more than 25%) to report for tax purposes in US dollars. The Company implemented these regulations on January 1, 2023. |
Schedule of Deferred Tax Assets | The principal components of the Company’s deferred tax assets are as follows: December 31 2023 2022 Deferred tax assets: Net operating loss carry forwards $ 28,032 $ 21,991 Research and development 6,252 4,834 Employees and payroll accrual 299 272 Property and equipment 79 57 Total deferred tax assets 34,662 27,154 Valuation allowance (34,662 ) (27,154 ) Deferred tax assets, net of valuation allowance $ - $ - |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
Schedule of Property and Equipment, Net of Depreciation, by Geographic Region | Revenue by geographical region can be found in the revenue recognition disclosures in Note 3 The following table presents the Company’s property and equipment, net of depreciation, by geographic region: December 31, 202 3 202 2 Israel $ 1,309 $ 1,609 United States - - Total property and equipment, net: $ 1,309 $ 1,609 |
General (Details)
General (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 ₪ / shares shares | Dec. 31, 2023 $ / shares shares | |
General [Line Items] | |||||
Ordinary shares | 48,268,611 | 48,268,611 | |||
Ordinary shares par value | $ / shares | $ 10 | ||||
Ordinary shares amount (in Dollars) | $ | $ 525,000 | ||||
Warrants shares | 10,735,680 | 10,735,680 | |||
Total gross proceeds (in Dollars) | $ | $ 98,587 | ||||
Transaction costs (in Dollars) | $ | 16,707 | ||||
Public Warrants [Member] | |||||
General [Line Items] | |||||
Warrants shares | 7,623,600 | 7,623,600 | |||
Private Warrants [Member] | |||||
General [Line Items] | |||||
Warrants shares | 3,112,080 | 3,112,080 | |||
PIPE [Member] | |||||
General [Line Items] | |||||
Ordinary shares par value | $ / shares | $ 10 | ||||
Total gross proceeds (in Dollars) | $ | $ 118,288 | ||||
Sale of ordinary shares | 10,000,000 | ||||
Minimum [Member] | |||||
General [Line Items] | |||||
Ordinary shares par value | ₪ / shares | ₪ 0.01 | ||||
Maximum [Member] | |||||
General [Line Items] | |||||
Ordinary shares par value | ₪ / shares | ₪ 0.000216 | ||||
Common Stock [Member] | |||||
General [Line Items] | |||||
Total gross proceeds (in Dollars) | $ | $ 100,000 | ||||
Arbe Robotics Ltd. [Member] | |||||
General [Line Items] | |||||
Ordinary shares | 3,866,842 | 3,866,842 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies (Details) [Line Items] | |||
Deposits rate | 8.33% | ||
Severance Costs (in Dollars) | $ 1,166 | $ 1,240 | $ 826 |
Tax percentage | 50% | ||
Minimum [Member] | |||
Significant Accounting Policies (Details) [Line Items] | |||
Bank deposit bearing annual interest rate | 4% | ||
Maximum [Member] | |||
Significant Accounting Policies (Details) [Line Items] | |||
Bank deposit bearing annual interest rate | 6% |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of the Straight-Line Method Over the Estimated Useful Lives of the Assets | Dec. 31, 2023 | |
Computers and peripheral equipment [Member] | Minimum [Member] | ||
Significant Accounting Policies (Details) - Schedule of the Straight-Line Method Over the Estimated Useful Lives of the Assets [Line Items] | ||
Property and equipment | 15% | |
Computers and peripheral equipment [Member] | Maximum [Member] | ||
Significant Accounting Policies (Details) - Schedule of the Straight-Line Method Over the Estimated Useful Lives of the Assets [Line Items] | ||
Property and equipment | 33% | |
Office furniture and equipment [Member] | Minimum [Member] | ||
Significant Accounting Policies (Details) - Schedule of the Straight-Line Method Over the Estimated Useful Lives of the Assets [Line Items] | ||
Property and equipment | 7% | |
Office furniture and equipment [Member] | Maximum [Member] | ||
Significant Accounting Policies (Details) - Schedule of the Straight-Line Method Over the Estimated Useful Lives of the Assets [Line Items] | ||
Property and equipment | 15% | |
Vehicles [Member] | ||
Significant Accounting Policies (Details) - Schedule of the Straight-Line Method Over the Estimated Useful Lives of the Assets [Line Items] | ||
Property and equipment | 15% | |
Leasehold improvement [Member] | ||
Significant Accounting Policies (Details) - Schedule of the Straight-Line Method Over the Estimated Useful Lives of the Assets [Line Items] | ||
Property and equipment | [1] | |
[1] Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the improvements. |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue [Abstract] | ||
Deferred revenue | $ 0 | $ 351 |
Remaining performance obligation | $ 977 | $ 232 |
Revenue (Details) - Schedule of
Revenue (Details) - Schedule of Revenue Disaggregated by Geography - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue by geography: | |||
Revenue | $ 1,470 | $ 3,517 | $ 2,249 |
% of Revenue | 100% | 100% | 100% |
China [Member] | |||
Revenue by geography: | |||
Revenue | $ 639 | $ 1,476 | $ 702 |
% of Revenue | 43.50% | 42% | 31.20% |
Hong Kong [Member] | |||
Revenue by geography: | |||
Revenue | $ 266 | $ 35 | |
% of Revenue | 18.10% | 1.60% | |
Sweden [Member] | |||
Revenue by geography: | |||
Revenue | $ 247 | $ 1,276 | $ 928 |
% of Revenue | 16.80% | 36.30% | 41.20% |
USA [Member] | |||
Revenue by geography: | |||
Revenue | $ 148 | $ 135 | $ 63 |
% of Revenue | 10.10% | 3.80% | 2.80% |
Germany [Member] | |||
Revenue by geography: | |||
Revenue | $ 81 | $ 284 | $ 351 |
% of Revenue | 5.50% | 8.10% | 15.60% |
Israel [Member] | |||
Revenue by geography: | |||
Revenue | $ 50 | $ 25 | $ 34 |
% of Revenue | 3.40% | 0.70% | 1.50% |
Italy [Member] | |||
Revenue by geography: | |||
Revenue | $ 124 | ||
% of Revenue | 3.50% | ||
Switzerland [Member] | |||
Revenue by geography: | |||
Revenue | $ 197 | $ 53 | |
% of Revenue | 5.60% | 2.40% | |
Other [Member] | |||
Revenue by geography: | |||
Revenue | $ 39 | $ 83 | |
% of Revenue | 2.60% | 3.70% |
Prepaid Expenses and Other Re_3
Prepaid Expenses and Other Receivables (Details) - Schedule of Prepaid Expenses and Other Receivables - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Prepaid Expenses and Other Receivables [Abstract] | ||
Government authorities | $ 385 | $ 280 |
Deposits | 69 | 85 |
Grants receivable | 310 | 319 |
Prepaid expenses and other | 1,262 | 1,155 |
Total | $ 2,026 | $ 1,839 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and Equipment [Abstract] | |||
Depreciation expense | $ 557 | $ 481 | $ 342 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cost: | ||
Property and equipment, gross | $ 3,312 | $ 3,055 |
Accumulated depreciation | 2,003 | 1,446 |
Property and equipment, net | 1,309 | 1,609 |
Computers and peripheral equipment [Member] | ||
Cost: | ||
Property and equipment, gross | 2,448 | 2,350 |
Leasehold improvement [Member] | ||
Cost: | ||
Property and equipment, gross | 582 | 438 |
Office furniture and equipment [Member] | ||
Cost: | ||
Property and equipment, gross | 133 | 128 |
Vehicles [Member] | ||
Cost: | ||
Property and equipment, gross | $ 149 | $ 139 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Supplemental Cash Flow Information Related to Leases - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Supplemental Cash Flow Information Related to Leases [Abstract] | ||
Cash payments and expenses related to operating leases | $ (451) | $ (370) |
Operating lease right-of-use assets and liabilities, net | $ 2 | $ (84) |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Maturities of Lease Liabilities $ in Thousands | Dec. 31, 2023 USD ($) |
Schedule of Maturities of Lease Liabilities [Abstract] | |
2024 | $ 443 |
2025 | 393 |
2026 | 356 |
2027 and after | 1,033 |
Total lease payments | 2,225 |
Less imputed interest | 483 |
Total lease liabilities | $ 1,742 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Supplemental Balance Sheet Information Related to Operating Leases - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases [Abstract] | ||
Operating lease right-of-use assets | $ 1,740 | $ 465 |
Current maturities of operating leases | 436 | 364 |
Long-term operating lease liabilities | $ 1,306 | $ 17 |
Weighted average remaining lease term (in years) | 5 years 6 months | 1 year 1 month 6 days |
Weighted average discount rate | 9.40% | 5.80% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Commitments and Contingent Liabilities [Abstract] | |
Grants value (in Dollars) | $ 3,846 |
Royalty percentage | 4% |
Maximum aggregate royalties paid | 100% |
Warrants Liabilities (Details)
Warrants Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Warrants Liabilities [Line Items] | |||
Aggregate exercise price | $ 550 | ||
Volatility impact rate | 5% | ||
Fair value of warrants | $ 180 | ||
Warrants | $ 756 | $ 8,425 | $ 3,083 |
Private Placement [Member] | |||
Warrants Liabilities [Line Items] | |||
Derivative warrant liability shares (in Shares) | 3,112,080 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) | 1 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 ₪ / shares shares | Dec. 31, 2022 ₪ / shares shares | Dec. 31, 2016 shares | |
Shareholders’ Equity [Line Items] | |||||||
Ordinary shares, authorized (in Shares) | 130,000,000 | 130,000,000 | |||||
Ordinary shares, par value (in New Shekels per share) | ₪ / shares | ₪ 0.000216 | ₪ 0.000216 | |||||
Stock split | the Company effected a 1:46.25783 stock split | ||||||
Ordinary shares issue value | $ | $ 23,000 | ||||||
Ordinary shares issue (in Shares) | 11,794,873 | ||||||
Share Price (in Dollars per share) | $ / shares | $ 1.95 | ||||||
Net of issuance costs | $ | $ 22,496 | $ 22,496,000 | |||||
Plan expiration period | 7 years | ||||||
Expected dividend yield | 0% | ||||||
Stock-based compensation | $ | $ 629,000 | $ 354,000 | $ 115,000 | ||||
2016 Share Incentive Plan [Member] | Ordinary Shares [Member] | |||||||
Shareholders’ Equity [Line Items] | |||||||
Ordinary shares were reserved for issuance (in Shares) | 3,384,454 | ||||||
2021 Plan [Member] | |||||||
Shareholders’ Equity [Line Items] | |||||||
Ordinary shares were reserved for issuance (in Shares) | 4,079,427 | ||||||
Options vested period | 4 years | ||||||
Share option , description | (i) 5% of the total number of ordinary shares outstanding on December 31 of the immediately preceding calendar year, and (ii) an amount determined by the Board, if so determined prior to the January 1 of the calendar year in which the increase will occur | ||||||
Vesting period, description | The vesting period of the awards is generally four years. Generally, under the terms of the Plans, unless determined otherwise, 25% of an award granted becomes exercisable on the first anniversary of the date of grant and 6.25% becomes exercisable once every quarter during the subsequent three years. | ||||||
2016 Plan [Member] | |||||||
Shareholders’ Equity [Line Items] | |||||||
Options vested period | 4 years |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - Schedule of Stock Option Activity - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Options: | ||||
Outstanding share options ending balance | 3,768,034 | 5,057,255 | 6,052,214 | 5,461,337 |
Weighted-average exercise price ending balance (in Dollars per share) | $ 0.767 | $ 4.543 | $ 4.166 | $ 3.102 |
Weighted average remaining contractual life (years), ending balance | 4 years 7 months 15 days | 5 years 7 months 28 days | 5 years 6 months 25 days | 5 years 4 months 10 days |
Aggregate intrinsic value ending balance (in Dollars) | $ 119,146 | $ 2,352,517 | $ 7,761,705 | $ 16,713,971 |
Granted, Outstanding share options | 430,874 | 1,630,142 | 1,966,916 | |
Granted, Weighted-average exercise price (in Dollars per share) | $ 2.728 | $ 6.833 | $ 7.25 | |
Exercisable, Outstanding share options | 3,210,191 | |||
Exercisable, Weighted-average exercise price (in Dollars per share) | $ 3.643 | |||
Exercisable, Weighted average remaining contractual life (years) | 4 years 4 months 25 days | |||
Exercisable, Aggregate intrinsic value (in Dollars) | $ 2,277,303 | |||
Options available for future grants, Outstanding share options | 611,246 | |||
Forfeited, Outstanding share options | (351,671) | (468,814) | (117,863) | |
Forfeited, Weighted-average exercise price (in Dollars per share) | $ 7.767 | $ 5.557 | $ 0.972 | |
Exercised, Outstanding share options | (1,074,162) | (570,451) | (155,750) | |
Exercised, Weighted-average exercise price (in Dollars per share) | $ 0.654 | $ 0.482 | $ 0.602 |
Shareholders_ Equity (Details_2
Shareholders’ Equity (Details) - Schedule of RSUs Activity - RSUs [Member] - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RSUs: | |||
Outstanding, Numbers of RSUs, beginning balance | 2,598,084 | 1,968,794 | |
Granted, Numbers of RSUs | 2,908,983 | 1,619,898 | 1,968,794 |
Forfeited, Numbers of RSUs | (370,067) | (417,025) | |
Vested, Numbers of RSUs | (895,170) | (573,583) | |
Outstanding, Numbers of RSUs, ending balance | 4,241,830 | 2,598,084 | 1,968,794 |
Shareholders_ Equity (Details_3
Shareholders’ Equity (Details) - Schedule of Compensation to Employees | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Compensation to Employees [Line Items] | |||
Expected term, in years | 5 years 9 months 25 days | ||
Expected dividend yield | 0% | 0% | 0% |
Minimum [Member] | |||
Schedule of Compensation to Employees [Line Items] | |||
Expected term, in years | 4 years 4 months 28 days | 4 years 7 months 9 days | |
Expected volatility | 47% | 47% | 42% |
Risk-free interest rate | 4.15% | 1.74% | 0.49% |
Maximum [Member] | |||
Schedule of Compensation to Employees [Line Items] | |||
Expected term, in years | 6 years 1 month 9 days | 6 years 1 month 9 days | |
Expected volatility | 51.75% | 48% | 46% |
Risk-free interest rate | 4.55% | 3.96% | 1.28% |
Shareholders_ Equity (Details_4
Shareholders’ Equity (Details) - Schedule of Share Based Compensation Expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Share Based Compensation Expense [Line Items] | |||
Total stock-based compensation expense | $ 13,012 | $ 8,793 | $ 2,211 |
Research and development [Member] | |||
Schedule of Share Based Compensation Expense [Line Items] | |||
Total stock-based compensation expense | 8,721 | 5,726 | 1,518 |
Sales and marketing [Member] | |||
Schedule of Share Based Compensation Expense [Line Items] | |||
Total stock-based compensation expense | 2,229 | 1,403 | 217 |
General and administrative [Member] | |||
Schedule of Share Based Compensation Expense [Line Items] | |||
Total stock-based compensation expense | 1,786 | 1,537 | 419 |
Cost of revenues [Member] | |||
Schedule of Share Based Compensation Expense [Line Items] | |||
Total stock-based compensation expense | $ 276 | $ 127 | $ 57 |
Net Loss Per Share Attributib_3
Net Loss Per Share Attributible to Ordinary Sharholders (Details) - Schedule of Sets Forth the Computation of Basic and Diluted Net Loss Per Share Attributable - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Numerator: | ||||
Net loss | $ (43,500) | $ (40,494) | $ (58,092) | |
Denominator: | ||||
Weighted-average shares used in computing loss per share attributable to ordinary shareholders, basic (in Shares) | 72,021,520 | 63,489,983 | 22,027,292 | |
Loss per share attributable to ordinary shareholders, basic (in Dollars per share) | $ (0.6) | $ (0.64) | $ (2.64) | |
Numerator: | ||||
Adjusted Net loss | [1] | $ (44,256) | $ (48,919) | $ (58,092) |
Denominator: | ||||
Weighted-average shares used in computing loss per share attributable to ordinary shareholders, diluted (in Shares) | 62,390,302 | 60,960,641 | 22,027,292 | |
Loss per share attributable to ordinary shareholders, diluted (in Dollars per share) | [1] | $ (0.71) | $ (0.8) | $ (2.64) |
Revaluation of warrants | $ (756) | $ (8,425) | $ (3,083) | |
[1] Loss per share attributable to ordinary shareholders, diluted, was adjusted and take into consideration warrants liabilities revaluations as part of our net loss for 2023 and 2022. |
Net Loss Per Share Attributib_4
Net Loss Per Share Attributible to Ordinary Sharholders (Details) - Schedule of Ordinary Shares that were Excluded from the Computation of Diluted Net Loss Per Share - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares | 9,299,085 | 8,650,298 | 27,861,855 |
Convertible preferred shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares | 26,499,069 | ||
Outstanding share options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares | 9,299,085 | 8,650,298 | 1,362,786 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxes on Income [Line Items] | |||
Foreign holding percentage | 25% | ||
Net operating loss carryforward (in Dollars) | $ 121,880 | ||
Israel [Member] | |||
Taxes on Income [Line Items] | |||
Foreign holding percentage | 23% | 23% | 23% |
United States [Member] | |||
Taxes on Income [Line Items] | |||
Foreign holding percentage | 21% |
Taxes on Income (Details) - Sc
Taxes on Income (Details) - Schedule of Company’s Loss Before Income Taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Company’s Loss Before Income Taxes [Abstract] | |||
Domestic | $ (43,500) | $ (40,494) | $ (58,092) |
Foreign | |||
Total | $ (43,500) | $ (40,494) | $ (58,092) |
Taxes on Income (Details) - _2
Taxes on Income (Details) - Schedule of Reconciliation Income Tax Benefit - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of Reconciliation Income Tax Benefit [Abstract] | ||||
Loss before income taxes, as reported in the consolidated statements of operations | $ 43,500 | $ 40,494 | $ 58,092 | |
Statutory tax rate | 23% | 23% | 23% | |
Income tax benefit at statutory tax rate | $ (10,005) | $ (9,314) | $ (13,361) | |
Effect of Non-deductible expenses | 3,063 | 475 | 6,129 | |
Remeasurement of deferred taxes from currency exchange | [1] | 3,517 | 209 | |
Change in valuation allowance | 7,508 | 5,322 | 7,023 | |
Other | (566) | |||
Reported income taxes benefit | ||||
[1] The income Tax Regulations (rules regarding ledger management of foreign invested companies and certain partnerships and the determination of their taxable income), 1986 allow Foreign Invested Companies (i.e., foreign holding percentage of more than 25%) to report for tax purposes in US dollars. The Company implemented these regulations on January 1, 2023. |
Taxes on Income (Details) - _3
Taxes on Income (Details) - Schedule of Deferred Tax Assets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 28,032 | $ 21,991 |
Research and development | 6,252 | 4,834 |
Employees and payroll accrual | 299 | 272 |
Property and equipment | 79 | 57 |
Total deferred tax assets | 34,662 | 27,154 |
Valuation allowance | (34,662) | (27,154) |
Deferred tax assets, net of valuation allowance |
Segment Information (Details)
Segment Information (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Customer1 [Member] | |||
Segment Information [Line Items] | |||
Percentage of revenue of customers | 38.90% | 33.40% | 41.10% |
Customer2 [Member] | |||
Segment Information [Line Items] | |||
Percentage of revenue of customers | 18.10% | 19.40% | 31.20% |
Customer3 [Member] | |||
Segment Information [Line Items] | |||
Percentage of revenue of customers | 12.70% | 18.90% | 15.60% |
Segment Information (Details) -
Segment Information (Details) - Schedule of Property and Equipment, Net of Depreciation, by Geographic Region - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Information (Details) - Schedule of Property and Equipment, Net of Depreciation, by Geographic Region [Line Items] | ||
Total property and equipment, net: | $ 1,309 | $ 1,609 |
Israel [Member] | ||
Segment Information (Details) - Schedule of Property and Equipment, Net of Depreciation, by Geographic Region [Line Items] | ||
Total property and equipment, net: | 1,309 | 1,609 |
UNITED STATES [Member] | ||
Segment Information (Details) - Schedule of Property and Equipment, Net of Depreciation, by Geographic Region [Line Items] | ||
Total property and equipment, net: |