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Note 16 - Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

NOTE 16: COMMITMENTS AND CONTINGENCIES

 

a. The Company is involved in several legal proceedings and claims that have arisen in the ordinary course of business and remain unresolved. As of December 31, 2025, the outcome of these matters was anticipated to be more likely than not. Consequently, the Company has recorded a provision amounting to approximately $300 on the consolidated balance sheet.

 

b. As of December 31, 2025, the Company and its subsidiaries had several non-cancelable operating leases, primarily for facilities and equipment. These leases generally contain renewal options and require the Company and its subsidiaries to pay all executory costs such as maintenance and insurance. In addition, the Company has several fixed service agreements with sub-contractors.

 

As of December 31, 2025, future purchase obligations and minimum rental commitments for leasehold properties and operating leases with non-cancelable terms are as follows:

 

   

Minimum

rental
commitments

for

leasehold

properties

    

Commitments

for

other lease

obligations

    

Other

purchase
obligations

    

Total

  
                                 

2026

   $ 785     $ 3,814     $ 4,529     $ 9,128  

2027

     811       3,784       —       4,595  

2028

     747       3,603       —       4,350  

2029

     706       —       —       706  

2030

     706       —       —       706  

2031 and thereafter

     3,253       —       —       3,253  

Total

   $ 7,008     $ 11,201     $ 4,529     $ 22,738  

 

c. Royalties:

 

The Company participated in programs sponsored by the Israeli government for the support of research and development activities. Through December 31, 2025, the Company had obtained grants from the IIA for certain of the Company’s research and development projects. The Company is obligated to pay royalties to the IIA, amounting to 3%-3.5% of the sales of the products and other related revenues (based on the dollar) generated from such projects, up to 100% of the grants received. Royalty payment obligations also bear interest at the LIBOR rate. The obligation to pay these royalties is contingent on actual sales of the products and in the absence of such sales, no payment is required.

 

Royalty expenses relating to the IIA grants included in cost of revenues for the years ended December 31, 2023, 2024 and 2025 amounted to $1,010, $1,580 and $525, respectively. As of December 31, 2025, the aggregate contingent liability to the IIA (including interest) amounted to $28,464.