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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES
NOTE 9:- INCOME TAXES

 

a.Corporate tax rates:

 

The corporate tax rate in Israel in 2022, 2021 and 2020 was 23%.

 

The United States of America federal rate was 21% and the state corporate income tax rates range from 6.5% to 11.5%, for the years ended December 31, 2022, 2021 and 2020. The Company didn’t account for any federal, state and foreign income tax expenses for the years ended December 31, 2022, 2021 and 2020. The Company is subject to United States of America income tax laws. There are no provisions for United States of America federal, state or other taxes for any period.

 

Loss before taxes is comprised as follows:

 

  

Year Ended
December 31,

 
   2022   2021   2020 
             
Domestic (Israel)  $38,403   $41,197   $35,983 
Foreign   1,154    1,404    886 
                
   $39,557   $42,601   $36,869 

 

b.Net operating losses carryforward:

 

The Company has accumulated losses for tax purposes as of December 31, 2022, in the amount of approximately $152,107 which may be carried forward and offset against taxable income in the future for an indefinite period.

 

c.Tax assessment:

 

The Company has net operating losses from prior tax periods which may be subjected to examination in future periods. As of December 31, 2022, the Company’s tax years until December 31, 2017, are subject to the statute of limitation in Israel.

 

The US Subsidiary has yet to receive final tax assessments since its incorporation.

 

d.Deferred taxes:

 

Deferred income 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. The Company’s deferred tax assets are comprised of operating loss carryforwards and other temporary differences. Significant components of the Company’s deferred tax assets are as follows:

 

   December 31, 
   2022   2021 
         
Deferred tax assets:        
Carryforward losses  $34,984   $31,289 
Research and development expenses   5,376    5,203 
Operating lease liabilities   490    - 
Reserves and allowances   157    239 
Issuance costs   -    479 
           
Deferred tax assets before valuation allowance   41,007    37,210 
Valuation allowance   (40,448)   (37,210)
           
Total deferred tax assets   559    - 
           
Deferred tax liabilities:          
Operating lease ROU assets   (559)   - 
           
Total deferred tax liabilities   (559)   - 
           
Net deferred tax assets, net  $
-
   $
-
 

 

Management currently believes that since the Company has a history of losses, and there is uncertainty with respect to future taxable income of the Company, it is more likely than not that the deferred tax assets will not be utilized in the foreseeable future. Thus, a full valuation allowance was provided to reduce deferred tax assets to their realizable value.

 

d.Deferred taxes: (Cont.)

 

In 2022 and 2021, the main reconciling items of the Company’s statutory tax rate of 23% and the effective tax rate of (0.3)% and 0%, respectively, is tax carryforward losses and other temporary differences, such as research and development expenses, for which a full valuation allowance was provided.

 

e.Income taxes are comprised as follows:

 

  

Year Ended
December 31,

 
   2022   2021   2020 
             
Current  $129   $         -   $        - 
Deferred   
-
    
-
    
-
 
                
   $129   $-   $- 

 

   Year Ended
December 31,		 
   2022   2021   2020 
             
Domestic (Israel)  $
-
   $
         -
   $
          -
 
Foreign   129    
-
    
-
 
                
   $129   $-   $-