Schedule of Components of the Company’s Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,
	2023			2024
Deferred tax liabilities:
Intangible assets	$	13,789		$	10,162
Reserves and allowances		530			384
Right-of-use assets		5,169			5,121

Gross deferred tax liabilities	$	19,488		$	15,667

Deferred tax assets:

Carry-forwards losses	$	3,668		$	2,092
Intangible assets		1,495			494
Reserves and allowances		4,054			4,603
Lease liabilities		5,390			5,525

Gross deferred tax assets	$	14,607		$	12,714
Net deferred tax liabilities	$	(4,881	)	$	(2,953	)

Schedule of Theoretical Tax Expense

The following table presents reconciliation between the theoretical tax expense, assuming that all income was taxed at statutory tax rates, and the actual income tax expense, as recorded in the Company’s consolidated statements of profit or loss:

	Year ended December 31,
	2022			2023			2024

Income before income taxes, as per the statement of operations	$	57,417		$	52,436		$	54,619

Statutory tax rate in Israel		23	%		23	%		23	%

Tax computed at the statutory tax rate		13,205			12,060			12,562

Tax adjustment in respect of different tax rates		(1,756	)		(1,345	)		(3,052	)
Deferred taxes on losses for which deferred taxes were not created		(511	)		(2,764	)		(587	)
Tax-deductible costs, not included in the accounting costs		(2,680	)		-			-
Non-deductible expenses and tax expenses in respect of prior years, net		2,670			534			1,111
Uncertain tax positions and other		210			1,448			1,294

Taxes on income	$	11,138		$	9,934		$	11,328