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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2023
INCOME TAXES [Abstract] |
Components of Loss Before Taxes |
| a. | The components of the loss before taxes were as follows:
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Israel |  | $ | (65,764 | ) |  | $ | (24,819 | ) |  | $ | (42,414 | )
Foreign |  |  | (10,777 | ) |  |  | 20,367 |  |  |  | 40,442 |
Total |  | $ | (76,541 | ) |  | $ | (4,452 | ) |  | $ | (1,972 | )
Taxes on Income (Tax Benefit) |
| b. | Taxes on income (tax benefit) are comprised as follows:
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
Israel |  | $ | 1,363 |  |  | $ | 15 |  |  | $ | 4,685 |
Foreign |  |  | 19,632 |  |  |  | 23,332 |  |  |  | 18,944 |
Total current income tax expense |  |  | 20,995 |  |  |  | 23,347 |  |  |  | 23,629 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Israel |  |  | — |  |  |  | 1,388 |  |  |  | 973 |
Foreign |  |  | (15,496 | ) |  |  | (17,212 | ) |  |  | (1,626 | )
Total deferred income tax benefit |  |  | (15,496 | ) |  |  | (15,824 | ) |  |  | (653 | )
Total income taxes |  | $ | 5,499 |  |  | $ | 7,523 |  |  | $ | 22,976 |
Reconciliation of Income Tax Expense to Actual Income Tax Expense | A reconciliation of the Company’s theoretical income tax expense to actual income tax expense is as follows:
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Loss before taxes on income, as reported in the consolidated statements of loss |  | $ | (76,541 | ) |  | $ | (4,452 | ) |  | $ | (1,972 | )
Statutory tax rate in Israel |  |  | 23 | % |  |  | 23 | % |  |  | 23 | %
Preferred Technology Enterprise |  |  | (9 | %) |  |  | (61 | %) |  |  | (244 | %)
Permanent difference - nondeductible expenses |  |  | (9 | %) |  |  | 86 | % |  |  | (557 | %)
Change in valuation allowance |  |  | (11 | %) |  |  | (109 | %) |  |  | (138 | %)
Income taxes at a rate other than the Israel statutory tax rate |  |  | (2 | %) |  |  | (164 | %) |  |  | (12 | %)
Release of tax-exempt profits under preferred enterprise tax regime |  |  | — |  |  |  | — |  |  |  | (221 | %)
Prior year taxes |  |  | 2 | % |  |  | 35 | % |  |  | 36 | %
Uncertain tax positions |  |  | (6 | %) |  |  | (10 | %) |  |  | (36 | %)
Other |  |  | 5 | % |  |  | 31 | % |  |  | (16 | %)
Effective tax rate |  |  | (7 | %) |  |  | (169 | %) |  |  | (1,165 | %)
Net Deferred Tax Assets and Liabilities | Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2023 and 2022, the deferred tax assets and liabilities presented in the balance sheet are comprised as follow:
|  | December 31, |
|  | 2023 |  |  | 2022 |
Deferred tax assets |  | $ | — |  |  | $ | 3,821 |
Deferred tax liabilities |  | $ | (14,815 | ) |  | $ | (34,133 | )
As of December 31, 2023, and 2022 the Company’s deferred taxes were in respect of the following:
|  | December 31, |
|  | 2023 |  |  | 2022 |
Operating lease liabilities |  | $ | 14,225 |  |  | $ | 14,751 |
Research and development |  |  | 3,111 |  |  |  | 9,151 |
Share-based compensation expenses |  |  | 10,408 |  |  |  | 8,095 |
Tax credit carry forward |  |  | 9,657 |  |  |  | 4,356 |
Reserves and allowances |  |  | 6,146 |  |  |  | 3,888 |
Carry forward tax losses |  |  | 8,227 |  |  |  | 2,770 |
Issuance and transaction expenses |  |  | 533 |  |  |  | 2,111 |
Intangible assets, net |  |  | 1,643 |  |  |  | 1,963 |
Other |  |  | 3,082 |  |  |  | 842 |
Deferred tax assets before valuation allowance |  |  | 57,032 |  |  |  | 47,927 |
Valuation allowance |  |  | (24,781 | ) |  |  | (16,376 | )
Deferred tax assets |  |  | 32,251 |  |  |  | 31,551 |
Intangible assets, net |  |  | (31,208 | ) |  |  | (46,095 | )
Operating lease right of use assets |  |  | (12,368 | ) |  |  | (13,530 | )
Property and equipment, net |  |  | (2,031 | ) |  |  | (2,023 | )
Capitalized research and development |  |  | (966 | ) |  |  | — |
Other |  |  | (493 | ) |  |  | (215 | )
Deferred tax liabilities |  |  | (47,066 | ) |  |  | (61,863 | )
Deferred tax liabilities, net |  | $ | (14,815 | ) |  | $ | (30,312 | )
Reconciliation of Beginning and Ending Balance of Total Unrecognized Tax Positions | A reconciliation of the beginning and ending balance of total unrecognized tax positions is as follows:
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |
Unrecognized tax position, beginning of year |  | $ | 3,537 |  |  | $ | 3,084 |
Increase (decrease) related to prior years’ tax positions (1) |  |  | 3,382 |  |  |  | (387 | )
Increase related to current year tax positions |  |  | 1,727 |  |  |  | 1,070 |
Decrease due to lapses of statutes of limitations |  |  | (430 | ) |  |  | (230 | )
Unrecognized tax position, end of year |  | $ | 8,216 |  |  | $ | 3,537 |
___________________________________________
| (1) | The 2023 prior year’s tax positions includes $2,684 from prior year tax provision.

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