COMMITMENTS AND CONTINGENT LIABILITIES |
12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||
| COMMITMENTS AND CONTINGENT LIABILITIES |
NOTE
20: COMMITMENTS AND CONTINGENT LIABILITIES
As
of December 31, 2023, contingent liabilities exist regarding guarantees in the amounts of $6,123
and $1,946
in respect of office rent lease agreements and customs and other transactions, respectively.
The
Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories
and other purchase orders, which cannot be canceled without penalty. In addition, the Company acquires raw materials or other goods and
services, including product components, by issuing authorizations to its suppliers to purchase materials based on its projected demand
and manufacturing needs.
As
of December 31, 2023, the Company had non-cancelable purchase obligations totaling approximately $1,041,253,
out of which the Company recorded a provision for loss in the amount of $24,963.
As
of December 31, 2023, the Company had contractual obligations for capital expenditures totaling approximately $95,499.
These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing process.
From
time to time, the Company may be involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses
its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be
reasonably estimated, the Company accrues a liability for the estimated loss. These accruals are reviewed at least quarterly and adjusted
to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a
particular matter.
On
November 3, 2023, Daphne Shen, a purported stockholder of the Company, filed a proposed class action complaint for violation of federal
securities laws, individually and putatively on behalf of all others similarly situated, in the U.S District Court of the Southern District
of New York against the Company, the Company’s CEO and the Company’s CFO. The complaint alleges violations of Section 10(b)
and Rule 10b-5 of the Exchange Act, as well as violations of Section 20(a) of the Exchange Act against the individual defendants. The
complaint seeks class certification, damages, interest, attorneys’ fees, and other relief. On December 13, 2023, Javier Cascallar
filed a similar proposed class action. On February 7, 2024, the Court consolidated the two actions, and appointed co-lead plaintiffs and
lead counsel. Due to the early stage of this proceeding, the Company cannot reasonably estimate the potential range of loss, if any, or
the likelihood of a potential adverse outcome. The Company disputes the allegations of wrongdoing and intends to vigorously defend against
them.
In
August 2019, the Company was served with a lawsuit filed in the civil courts of Milan, Italy against the Italian subsidiary of SolarEdge
e-Mobility S.r.l (previously SMRE S.p.A) that purchased the shares of SolarEdge e-Mobility in the tender offer that followed the SolarEdge
e-Mobility Acquisition by certain former shareholders of SolarEdge e-Mobility who tendered their shares. The lawsuit asked for damages
of approximately $3,000,
representing the difference between the amount for which they tendered their shares (6
Euro per share) and 6.7
Euros per share. In December 2023 the court of Milan, rendered a decision ordering SolarEdge to pay, in favor of each plaintiff, the difference
between the price paid (6
Euro per share) and 6.44
Euro per share, i.e. 0.44
euros per share. The Company is currently evaluating whether to appeal this decision. As
of December 31, 2023, the Company recorded an accrual of $2,011
for legal claims which was recorded under accrued expenses and other current liabilities. |