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TAXES ON INCOME (TAX BENEFIT)
 9 Months Ended
Sep. 30, 2025
TAXES ON INCOME (TAX BENEFIT)  
TAXES ON INCOME (TAX BENEFIT)

NOTE 7 – TAXES ON INCOME (TAX BENEFIT)

The following table summarizes the Company’s taxes on income:

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Nine Months Ended September 30,

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Three Months Ended September 30, 

(U.S. dollars in thousands)

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2025

​

2024

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2025

​

2024

Current taxes on income

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$

91

​

$

164

​

$

(175)

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$

164

Deferred taxes on income

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​

177

​

​

236

​

$

59

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$

443

Total taxes on income (tax benefit)

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$

268

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$

400

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$

(116)

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$

607

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The Company had an effective tax rate of (32)% for the nine months ended September 30, 2025 compared to an effective tax rate of (13)% for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, the difference between the Company’s effective tax rate and the U.S. federal statutory rate of 21% was the result of forecasted profits derived primarily from U.S. taxable GILTI income mainly due to Section 174 of the U.S. Tax Cuts and Jobs Act of 2017 (the “TCJA”), which was enacted in December 2017.

On July 4, 2025, tax reform legislation was enacted in the United States through the passage of H.R.1, One Big Beautiful Bill Act (“HR1”), which includes significant corporate tax changes, including a restoration of the current deductibility for domestic research expenditures beginning in 2025, with transition options for previously capitalized amounts.