v3.23.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION
NOTE 21: SEGMENT INFORMATION
 
Following the discontinuation of Critical Power in June 2022, the Company operates in five different operating segments: Solar, Energy Storage, e-Mobility, Automation Machines, and the newly formed Consulting segment.
 
The Company’s Chief Executive Officer, who is the chief operating decision maker (“CODM”), makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the operating segments.
 
The Company does not allocate to its operating segments revenue recognized due to advance payments received for performance obligations that extend for a period greater than one year, related to Accounting Standard Codification 606, “Revenue from Contracts with Customers” (ASC 606).
 
Segment profit is comprised of gross profit for the segment less operating expenses that do not include amortization of purchased intangible assets, impairments of goodwill and intangible assets, stock based compensation expenses, and certain other items.
 
The Company manages its assets on a group basis, not by segments, as many of its assets are shared or co-mingled. The Company’s CODM does not regularly review asset information by segments and, therefore, the Company does not report asset information by segment.
 
The Company identified one operating segment as reportable – the Solar segment. The other operating segments are insignificant individually and therefore their results are presented together under “All other”.
 
The Solar segment includes the design, development, manufacturing, and sales of an intelligent inverter solution designed to maximize power generation at the individual PV module level and a residential storage solution, compatible with the Company’s Energy Hub inverter, intended to store and supply power for back-up and to maximize self-consumption. The Solar segment solution consists mainly of the Company’s power optimizers, inverters, batteries, and cloud‑based monitoring platform.
 
The “All other” category includes the design, development, manufacturing, and sales of energy storage products, e-Mobility products, automated machines, and consulting services.
 
The following tables present information on reportable segments profit (loss) for the period presented:
 
   
Three Months Ended

June 30, 2023

    
Six Months Ended

June 30, 2023

  
   
Solar
    
All other
    
Solar
    
All other
  
Revenues
  
$
947,360
    
$
43,728
    
$
1,855,865
    
$
78,925
  
Cost of revenues
    
618,943
      
47,931
      
1,209,048
      
94,147
  
Gross profit (loss)
    
328,417
      
(4,203
)
    
646,817
      
(15,222
)
Research and development
    
62,102
      
6,863
      
117,925
      
13,391
  
Sales and marketing
    
34,136
      
2,029
      
65,281
      
3,590
  
General and administrative
    
25,145
      
2,988
      
49,888
      
6,766
  
Segments profit (loss)
  
$
207,034
    
$
(16,083
)
  
$
413,723
    
$
(38,969
)

 

   
Three Months Ended
June 30, 2022
    
Six Months Ended
June 30, 2022
  
   
Solar
    
All other
    
Solar
    
All other
  
Revenues
  
$
687,599
    
$
40,029
    
$
1,295,596
    
$
86,977
  
Cost of revenues
    
494,400
      
38,948
      
918,900
      
83,289
  
Gross profit
    
193,199
      
1,081
      
376,696
      
3,688
  
Research and development
    
49,141
      
8,587
      
92,272
      
16,517
  
Sales and marketing
    
28,419
      
3,283
      
54,224
      
5,857
  
General and administrative
    
16,396
      
3,789
      
32,245
      
7,414
  
Segments profit (loss)
  
$
99,243
    
$
(14,578
)
  
$
197,955
    
$
(26,100
)
 
The following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented:
 
   
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
   
2023
    
2022
    
2023
    
2022
  
Solar revenues
  
$
947,360
    
$
687,599
    
$
1,855,865
    
$
1,295,596
  
All other revenues
    
43,728
      
40,029
      
78,925
      
86,977
  
Revenues from finance component
    
202
      
146
      
389
      
281
  
Consolidated revenues
  
$
991,290
    
$
727,774
    
$
1,935,179
    
$
1,382,854
  
 
The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented:
 
   
Three Months Ended
June 30,
    
Six Months Ended
June 30,​​​​​​​
  
   
2023
    
2022
    
2023
    
2022
  
Solar segment profit
  
$
207,034
    
$
99,243
    
$
413,723
    
$
197,955
  
All other segment loss
    
(16,083
)
    
(14,578
)
    
(38,969
)
    
(26,100
)
Segments operating profit
    
190,951
      
84,665
      
374,754
      
171,855
  
Amounts not allocated to segments:
                                
Stock based compensation expenses
    
(38,965
)
    
(37,074
)
    
(78,200
)
    
(71,181
)
Impairment of goodwill and intangible assets
    
-
      
(4,008
)
    
-
      
(4,008
)
Disposal of assets related to Critical Power
    
-
      
(4,314
)
    
-
      
(4,314
)
Other unallocated expenses, net
    
(1,628
)
    
(3,257
)
    
(2,042
)
    
(5,476
)
Consolidated operating income
  
$
150,358
    
$
36,012
    
$
294,512
    
$
86,876