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INCOME TAXES (Tables)

12 Months Ended

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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