InMode (INMD) 20-F 18 Feb 20 2019 FY Annual report (foreign) Financial data

Document Entity Information

Document Entity Information	12 Months Ended
	Dec. 31, 2019shares
Cover [Abstract]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019
Current Fiscal Year End Date	--12-31
Registrant Name	InMode Ltd.
Entity Central Index Key	0001742692
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	true
Document Annual Report	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	0
Entity File Number	001-39016
Entity Incorporation State Country Code	IL
Document Transition Report	false
Document Shell Company Report	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents		$ 44,727	$ 24,721
Marketable securities		120,144	26,532
Short-term bank deposits		28,491	10,045
Accounts receivable, net of allowance for doubtful accounts		6,628	7,008
Other receivables		3,811	2,495
Inventories		9,408	6,963
T O T A L CURRENT ASSETS		213,208	77,764
NON-CURRENT ASSETS:
Accounts receivable		374	544
Deferred offering costs			895
Deferred income taxes, net		1,899	1,309
Operating lease right-of-use assets		1,369
Property and equipment, net		935	544
Other Investments		600
T O T A L NON-CURRENT ASSETS		5,177	3,292
T O T A L ASSETS		218,385	81,056
CURRENT LIABILITIES:
Accounts payable		3,702	4,509
Contract liabilities		15,587	5,755
Other liabilities		13,205	9,165
Accrued contingencies			10,000
T O T A L CURRENT LIABILITIES		32,494	29,429
NON-CURRENT LIABILITIES:
Contract liabilities	[1]	3,813	3,982
Other liabilities		1,494	771
Operating lease liabilities		744
Deferred income taxes, net		37	11
T O T A L NON-CURRENT LIABILITIES		6,088	4,764
T O T A L LIABILITIES		38,582	34,193
COMMITMENTS AND CONTINGENCIES (note 10)
REDEEMABLE NON-CONTROLLING INTEREST			2,187
InMode Ltd. shareholders' equity:
Ordinary shares, NIS 0.01 par value, - authorized: 100,000,000 shares issued and outstanding: 32,799,082 and 26,682,413 shares at December 31, 2019 and 2018, respectively		93	42
Additional paid-in capital		81,863	10,184
Retained earnings		93,986	32,971
Accumulated other comprehensive income		124	66
InMode Ltd. shareholders' equity		176,066	43,263
Non-controlling interests		3,737	1,413
T O T A L SHAREHOLDERS' EQUITY		179,803	44,676
T O T A L LIABILITIES AND SHAREHOLDERS' EQUITY		$ 218,385	$ 81,056
[1]	As of December 31, 2019, non- current deferred revenue is estimated to be recognized as following: 81% in year 2021, and the rest in year 2022.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Ordinary shares, par value	₪ 0.01	₪ 0.01
Ordinary shares, shares authorized	100,000,000	100,000,000
Ordinary shares, issued shares	32,799,082	26,682,413
Ordinary shares, outstanding shares	32,799,082	26,682,413

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
REVENUES	$ 156,361	$ 100,162	$ 53,456
COST OF REVENUES	20,238	15,057	9,053
GROSS PROFIT	136,123	85,105	44,403
OPERATING EXPENSES:
Research and development	5,699	4,180	2,575
Sales and marketing	66,848	44,622	28,514
General and administrative	3,958	4,814	4,364
Legal settlements and loss contingencies		8,000
TOTAL OPERATING EXPENSES	76,505	61,616	35,453
INCOME FROM OPERATIONS	59,618	23,489	8,950
Finance income, net	2,423	136	849
INCOME BEFORE TAXES	62,041	23,625	9,799
INCOME TAXES	883	1,260	980
NET INCOME	61,158	22,365	8,819
Less: Net income (loss) attributable to non-controlling interests	13	(6)
NET INCOME ATTRIBUTABLE TO INMODE LTD	$ 61,145	$ 22,371	$ 8,819
NET INCOME PER SHARE:
Basic	$ 2.09	$ 0.82	$ 0.29
Diluted	$ 1.60	$ 0.62	$ 0.26
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE
Basic	29,231,476	26,613,942	26,283,548
Diluted	38,058,625	35,006,644	29,669,922

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 61,158	$ 22,365	$ 8,819
OTHER COMPREHENSIVE INCOME:
Change in foreign currency translation adjustment	(34)	(153)	73
Change in net unrealized gains of marketable securities, net of tax	86	(1)	302
T O T A L COMPREHENSIVE INCOME, net	61,210	22,211	9,194
Less: Comprehensive income (loss) attributable to non-controlling interests	7	(1)
T O T A L COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST	$ 61,203	$ 22,212	$ 9,194

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Ordinary Shares [Member]		Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Noncontrolling Interest [Member]	Total
Begining Balance at Dec. 31, 2016	$ 74		$ 5,527	$ 3,154	$ 166		$ 8,921
Begining Balance, Shares at Dec. 31, 2016	26,250,393
Net income				8,819			8,819
Other comprehensive income, net					375		375
Share-based compensation			2,436				2,436
Adjustment to redemption value of redeemable non-controlling interest				(1,154)			(1,154)
Waiver of redeemable non-controlling interests (see note 11b)
Exercise of options		[1]	56				56
Exercise of options, shares	100,091
Ending Balance at Dec. 31, 2017	$ 74		8,019	10,819	541		19,453
Ending Balance, shares at Dec. 31, 2017	26,350,484
Impact of adoption of new accounting standard at Dec. 31, 2018				316	(316)
BALANCE, as adjusted at Dec. 31, 2018	$ 74		8,019	11,135	225		19,453
BALANCE, as adjusted, shares at Dec. 31, 2018	26,350,484
Net income				22,371		(6)	22,365
Other comprehensive income, net					(159)	5	(154)
Share-based compensation			1,947				1,947
Adjustment to redemption value of redeemable non-controlling interest				(535)			(535)
Waiver of redeemable non-controlling interests (see note 11b)						1,414	1,414
Exercise of options		[1]	186				186
Exercise of options, shares	331,929
Ending Balance at Dec. 31, 2018	$ 74		10,152	32,971	66	1,413	44,676
Ending Balance, shares at Dec. 31, 2018	26,682,413
Net income				61,145		13	61,158
Other comprehensive income, net					58	(6)	52
Share-based compensation			1,557				1,557
Adjustment to redemption value of redeemable non-controlling interest				(130)			(130)
Waiver of redeemable non-controlling interests (see note 11b)						2,317	2,317
Initial public offering of ordinary shares, net of offering costs	$ 16		69,768				69,794
Initial public offering of ordinary shares, net of offering costs, shares	5,500,000
Exercise of options	$ 3		386				389
Exercise of options, shares	616,669
Ending Balance at Dec. 31, 2019	$ 93		$ 81,863	$ 93,986	$ 124	$ 3,737	$ 179,803
Ending Balance, shares at Dec. 31, 2019	32,799,082
[1]	Representing an amount less than one thousand.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 61,158	$ 22,365	$ 8,819
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	302	184	204
Share-based compensation expenses	1,557	1,947	2,436
Allowance for doubtful accounts	78	(33)	186
Loss (gains) on marketable securities, net	3	(21)	(1)
Changes in fair value of marketable securities, net		291	29
Finance income, net	(835)	(45)
Deferred income taxes, net	(594)	(592)	(580)
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	449	(571)	(2,699)
Increase in other receivables	(1,316)	(1,171)	(1,021)
Increase in inventories	(2,445)	(1,891)	(2,342)
Increase in accounts payable	92	541	1,506
Increase in other liabilities	4,094	2,631	3,982
Increase in contract liabilities	9,663	5,251	4,090
Increase (decrease) in accrued contingencies	(10,000)	8,000
Net cash provided by operating activities	62,206	36,886	14,609
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short-term deposit	(47,810)	(10,000)
Proceeds from short-term deposit	29,500
Purchase of fixed assets	(693)	(381)	(189)
Other Investments	(600)
Purchase of marketable securities	(165,423)	(38,346)	(5,697)
Proceeds from sale of marketable securities	72,574	18,988	202
Net cash used in investing activities	(112,452)	(29,739)	(5,684)
CASH FLOWS FROM FINANCING ACTIVITIES:
Transaction with redeemable non-controlling interest			1,729
Proceeds from initial public offering of ordinary shares, net of offering costs	69,784
Exercise of options	389	186	56
Net cash provided by financing activities	70,173	186	1,785
EFFECT OF EXCHANGE RATE CHANGES ON CASH	79	(205)	187
NET INCREASE IN CASH AND CASH EQUIVALENTS	20,006	7,128	10,897
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR	24,721	17,593	6,696
CASH AND CASH EQUIVALENTS AT END OF THE YEAR	44,727	24,721	17,593
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:
Income taxes paid	1,415	1,800	737
Interest received	1,525	662	605
NON-CASH ACTIVITIES
Deferred offering costs in accounts payable		895
Recognition of operating lease ROU and liabilities	$ 417

GENERAL

GENERAL	12 Months Ended
	Dec. 31, 2019
General [Abstract]
GENERAL	NOTE 1 - GENERAL InMode Ltd. (separately and together with its subsidiaries, the “Company”) was incorporated on January 2, 2008 and commenced operations shortly thereafter. The Company’s headquarters are located in Israel. The Company designs, develops, manufactures and markets innovative minimally-invasive aesthetic medical products based on its proprietary radio frequency assisted lipolysis and deep subdermal fractional radio frequency technologies. These technologies are used to remodel subdermal adipose, or fatty, tissue in a variety of procedures including liposuction with simultaneous skin tightening, body and face contouring and ablative skin rejuvenation treatments. In addition to the minimally-invasive technologies, the Company designs, develops, manufactures and markets non‑invasive medical aesthetic products that target a wide array of procedures including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture and superficial benign vascular and pigmented lesions. In August 2019, the Company completed an initial public offering (“IPO“) on the Nasdaq Global Select Market (the "Nasdaq"), in which it issued 5,000,000 ordinary shares, NIS 0.01 par value per share, at a price per share of $14. During August 2019 the underwriters partially exercised their over-allotment option and purchased an additional 500,000 ordinary shares at the same price per share. The net proceeds received from the IPO were approximately $69,784, after deducting underwriting commissions and other offering expenses. See also note 11a. The Company has eight wholly-owned subsidiaries located in the United States and Canada (“North America”), Hong-Kong, Japan, Spain, Israel, India and Australia. In addition, the Company has two subsidiaries located in the United Kingdom and China and holds a 51% interest in each of those subsidiaries. The Company’s ten subsidiaries are referred to collectively herein as the “Subsidiaries.” The Company sells its products primarily through its Subsidiaries. In April and August 2019, the Company established wholly-owned subsidiaries in India and Australia, respectively.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: a. Basis of presentation The Company’s consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). b. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. c. Functional currency The U.S. dollar (“U.S. dollar” or “$“) is the currency of the primary economic environment in which the operations Accordingly, the functional currency of the Company is the U.S. dollar (“primary currency”) Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Balances in non- U.S. dollar currencies are translated into U.S. dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-U.S. dollar transactions and other items in the statements of income (indicated below), the following exchange rates are used: (i) for transactions - exchange rates at transaction dates or average exchange rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization) - historical exchange rates. Currency transaction gains and losses are presented in financial income or expenses, as appropriate. The functional currency of each of the Subsidiaries is the U.S. dollar d. Principles of consolidation and presentation The consolidated financial statements include the accounts of the Company and its Subsidiaries. Intercompany transactions and balances are eliminated in consolidation. Non-controlling interests in subsidiaries represent the equity in subsidiaries not attributable, directly or indirectly, to the Company. Non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Profit or loss and components of other comprehensive income are attributed to the Company and to non-controlling interests. Losses are attributed to non-controlling interests even if they result in a negative balance of non-controlling interests in the consolidated statements of income. The carrying amount of the redeemable non-controlling interests were based on the higher of: (a) the non-controlling interests based on the initial fair value with the addition of its share in the operating results of the relevant subsidiary net of dividend paid; or (b) the redemption value of the put option. Adjustment of the carrying amount of the redeemable non-controlling interests was charged to retained earnings. The Company treats transactions with non-controlling interests as transactions with its equity owners. Accordingly, for purchases of shares from non-controlling interests, the difference between any consideration paid and the portion acquired of the carrying value of the net assets of the subsidiary is recorded in equity. e. Cash and cash equivalents The Company considers cash equivalents to be all short-term, highly liquid investments, which include money market instruments, that are not restricted as to withdrawal or use, and short-term bank deposits with original maturities of three months or less from the date of purchase that are not restricted as to withdrawal or use and are readily convertible to known amounts of cash. f. Short-term bank deposits Bank deposits with maturities of more than three months but less than one year are included in short-term deposits. Such short-term deposits bear interest at an average annual rate of approximately 2.63%-3.08% in 2018 and 0.35%-2.90% in 2019. g. Marketable securities Marketable securities consist of government bonds and corporate debt securities (together “debt securities”) and certificates of deposit measured at fair value in each reporting period. The fair value of quoted securities is based on current market value. Debt securities and certificates of deposit are classified as available-for-sale, with changes in fair value, net of taxes (if applicable), are reflected in other comprehensive income or loss. Realized gains and losses on sales of marketable debt securities as well as premium or discount amortization are included in the consolidated statements of income as finance income or expense. Unrealized losses are recorded in consolidated statements of income as finance income or expense when a decline in fair value is determined to be other than temporary. The Company classifies investments that are readily convertible to known amounts of cash and have stated maturities of three months or less from the date of purchase as cash equivalents and those with stated maturities of greater than three months as marketable securities. The Company determines the appropriate classification of its investments in marketable securities at the time of purchase. As of January 1, 2018 the Company adopted ASU 2016-01, “Financial Instruments - Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Liabilities” (“ASU 2016-01”), which relates to certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Therefore, commencing January 2018, changes in fair value of marketable equity securities and mutual funds, are reflected in the consolidated statements of income as finance income or expense. Prior to January 2018, these investments were classified as available-for-sale securities with changes in fair value, net of taxes, reflected in other comprehensive income. When such investments were sold or impaired, the accumulated fair value adjustments recognized in other comprehensive income were reclassified and included in the consolidated statements of income as finance income or expense. At the time of adoption, the Company reclassified an unrealized net gain on taxes of $316 related to the Company’s equity investments from accumulated other comprehensive income (“AOCI”) to retained earnings. The amount of $38, remaining in the AOCI at the time of adoption, relate to investments in debt securities. h. Other Investments For other investments, the Company applies the measurement alternative upon the adoption of ASU 2016-01, and elected to record equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes. In this measurement alternative method, changes in the carrying value of the equity investments are reflected in current earnings. Changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Investment in convertible debt is measured at cost, less any impairment (see also note 7). i. Inventories Inventories include raw materials and finished products and are valued at the lower of cost or net realizable value. Cost is determined as follows: • Raw materials: first in, first out (“FIFO”) method. • Finished products: using the “moving average” basis. The moving average is calculated as each additional inventory unit is purchased. The Company regularly evaluates its ability to realize the value of inventory based on a combination of factors including the following: historical usage rates, forecasted sales or usage, estimated current and future market values and new product introductions. j. Leases On January 1, 2019 the Company adopted ASU No. 2016-02, Leases (Topic 842), The Company determines if an arrangement is a lease at inception. Balances related to operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized as of the commencement date based on the present value of lease payments over the lease term. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. As the Company’s leases do not provide an implicit rate, the Company’s uses its estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term (see also note 2z and note 8). k. Property and equipment Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Computers 3 - 4 years Molds 4 - 10 years Equipment and furniture 10 - 17 years Leasehold improvements are amortized on a straight-line basis over the expected lease term, which is typically shorter than the estimated useful life of the improvements. l. Impairment of long-lived assets The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the long-lived asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the sum of the expected undiscounted cash flow is less than the carrying amount of the asset, the Company recognizes an impairment loss, which is the excess of the carrying amount over the fair value of the asset, using the expected future discounted cash flows. As of December 31, 2019, 2018 and 2017, the Company did not recognize an impairment loss on its long-lived assets. m. Legal and other contingencies Certain conditions may exist as of the date of the consolidated financial statements, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, if any, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Management applies the guidance in ASC 450-20, “Loss Contingencies” when assessing losses resulting from contingencies. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability is recorded as accrued expenses in the Company’s consolidated financial statements. Legal costs incurred in connection with loss contingencies are expensed as incurred. As of December 31,2018 the Company recorded a provision of $10,000 in relation to litigation that was resolved in January 2019 (see also note 10b). n. Income taxes: 1) The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized, based on the weight of available positive and negative evidence. Deferred tax liabilities and assets are classified as non-current in accordance with ASU 2015‑17. 2) Upon the distribution of dividends from the tax-exempt income of a Benefited Enterprise (see also note 12a(2)), the amount distributed is subject to tax at the rate that would have been applicable had the Company not been exempted from payment thereof. The tax amount will be recorded as an income tax expense in the period in which the Company declares the dividend. As to the amount of tax that would be owed if the Company distributed all of the retained earnings that would be subject to the tax exemption, see note 12a. 3) The Company may incur an additional tax liability in the event of an inter-company dividend distribution from Foreign Subsidiaries; no additional deferred income taxes have been provided, since the Company does not expect to distribute inter-company dividends in the foreseeable future that may result in additional tax liability. 4) Taxes that would apply in the event of disposal of investments in Subsidiaries have not been taken into account in computing the deferred income taxes, as it is the Company’s intent and ability to hold these investments. 5) The Company accounts for uncertain tax positions in accordance with ASC 740-10. ASC 740‑10 contains a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit of the largest amount that is more than 50% (cumulative probability) likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits under taxes on income (tax benefit). o. Share-based compensation The Company grants share options to its employees, directors and non-employees in consideration for services rendered. See note 11(a)(2) for details on outstanding share capital. The Company accounts for share-based payment awards classified as equity awards using the grant-date fair value method. The fair value at grant-date of the issued equity award is recognized as an expense on a straight-line basis over the requisite service period, net of estimated forfeitures. The fair value of each share-based payment granted is estimated using the Binomial Model. The Company estimates forfeitures based on historical experience and anticipated future conditions at the time of grant and revises such estimates in subsequent periods if actual forfeitures differ from those estimates. The Company elected to recognize share-based compensation cost for awards with only service conditions that have a graded vesting schedule using the straight-line method based on the multiple-option award approach. The Company applies ASU 2018-07 (Topic 718) that expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Under the provision of the amendment, the Company measures share-based compensation to non-employees in the same manner (except for certain exceptions) as share-based compensation to employees. Prior to January 1, 2018, when options were granted as consideration for services provided by consultants and other non-employees, the grant was accounted for based on the fair value of the consideration received or the fair value of the options issued, whichever is more reliably measurable. The fair value of the options granted was measured on a final basis at the end of the related service period and recognized over the related service period using the straight-line method. p. Revenue recognition The Company applies ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) Identify the contract(s) with a customer; (ii) Identify the performance obligations in the contract. The Company determined that its arrangements are generally comprised of the following elements that are recognized as separate performance obligations: products, consumables and extended warranties. (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract. The Company estimates the standalone selling prices of the services to be provided based on expected pricing of the service contract purchased on a standalone basis and uses the residual approach to estimate the selling price of the products; and (v) Recognize revenue when (or as) the performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer, after considering any price concession expected to be provided to the customer, when applicable. At contract inception, the Company assesses the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company uses the following practical expedients that are permitted under the rules: • The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in sales and marketing expenses. • The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The following is a description of the principal activities from which the Company generates its revenue. Product Revenue, Net Revenues from product sales are recognized when the customer obtains control over the Company’s product, typically upon shipment to the customer. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. Payment terms and conditions vary by customer. The Company’s standard terms for end users usually require of payment upon delivery and for distributors require 50% down payment and 50% payment within 30 days from the invoice date. The Company may enter into installment sales contracts with end users in North America that provide them with long-term (generally up to 60 months) financing for the purchase of the Company’s products. The interest rate used in these contracts reflects the credit characteristics of the party receiving financing in the contract, as well as any collateral or security provided by the customer. Interest income on these receivables is recognized as finance income and earned over the terms of the contract. Variable consideration mainly includes price concessions related to installment sales contracts. The Company recognizes any variable consideration at the time that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company does not grant a right of return, refund, cancelation or termination. From time to time, the Company participates in its customers' marketing activities and deducts such amounts from revenue. Service Revenue The Company also generates revenues from long-term maintenance contracts (“Extended Warranty”). Revenue from Extended Warranty is recognized ratably, on a straight-line basis, over the period of the applicable service contract. These maintenance agreements are included in contract liabilities. Revenue from repairs performed in the absence of Extended Warranty is recognized when the related services are performed. The Company classifies the portion of contract liabilities not expected to be earned in the subsequent 12 months as long-term. q. Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. The Company reviews the accounts receivable on a periodic basis and records an allowance when there is doubt as to the collectability of individual balances during the period in which such loss is determined to be probable based on an assessment of specific evidence indicating doubtful collection, historical experience, account balance aging and prevailing economic conditions. Doubtful account balances are written off and deducted from the allowance when the receivable is deemed uncollectible, after all collection efforts have been exhausted and the potential for recovery is considered remote. r. Warranty reserve The Company provides a one-year standard warranty for its products. The Company records a provision for the estimated cost to repair or replace products under warranty at the time of sale. Factors that affect the Company’s warranty reserve include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The following table sets forth activity in the Company’s accrued warranty account for each of the years ended December 31, 2019, 2018 and 2017, respectively: 2019 2018 2017 Balance at beginning of year 706 380 355 Cost incurred (756 ) (1,009 ) (547 ) Expense recognized 522 1,335 572 Balance at end of year 472 706 380 s. Cost of revenues Cost of revenue consists of products purchased from turnkey sub-contractors which are responsible for the production of most of the Company’s products under the Company’s directions and supervision, raw materials for in-house assembly line, shipping and handling costs to customers and to subsidiaries, salary, employee-related expenses and overhead expenses of internal assembly line and service costs associate with warranty. t. Research and development costs Research and development costs are expensed as incurred and includes salaries and employee-related expenses, overhead expenses, material and third-party contractor’s charges related to product development, regulatory affairs and clinical studies. u. Net income per share Basic earnings per share are computed by dividing net income attributed to InMode Ltd. shareholders by the weighted average number of the Company’s ordinary shares, par value NIS 0.01 per share, outstanding for each period. For the diluted earnings per share calculation, the weighted average number of shares outstanding during the year is adjusted for the average number of shares that are potentially issuable in connection with employee share-based payment, using the treasury stock method. The Company deducts the accretion of the redeemable non-controlling interest in computing the basic and diluted earnings per share. v. Fair value measurement The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In the absence of active markets for identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The fair value of the financial instruments included in the working capital of the Company is usually identical or close to their carrying value. The three levels of inputs that may be used to measure fair value are as follows: Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 - Observable prices that are based on identical or similar instruments not quoted on active markets, but corroborated by observable market data, or quoted prices for similar instruments in active markets. Level 3 - Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The Company maintains policies and procedures to determine the fair value of financial assets and liabilities using what it considers to be the most relevant and reliable market data available. w. Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. The Company’s chief operating decision-maker evaluates the performance of its business based on financial data consistent with the presentation in the accompanying financial statements. The Company concluded that its unified business is conducted globally and accordingly represents one operating segment. As of December 31, 2019 and 2018, most of the Company’s long-lived assets were maintained in Israel. Regarding details relating to revenue and long-lived assets by geography. See note 13. x. Employee severance benefits The Company is required to make severance payments upon dismissal of an employee or upon termination of employment in certain circumstances. In accordance with the current employment terms with all of its employees (Section 14 of the Israeli Severance Pay Law, 1963) located in Israel, the Company makes regular deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s full retirement benefit obligation. The Company is relieved from any severance pay liability with respect to each such employee after it makes the payments on behalf of the employee. The liability accrued in respect of these employees and the amounts funded, as of the respective agreement dates, are not reflected on the Company’s consolidated balance sheet, as the amounts funded are not under the control and management of the Company and the pension or severance pay risks have been irrevocably transferred to the applicable insurance companies. The amounts of severance payment expenses were $242, $174 and $154 and for the years ended December 31, 2019, 2018 and 2017 respectively. The Company expects to contribute approximately $ 270 in the year ending December 31, 2020 to insurance companies in connection with its expected severance liabilities for the year. y. Offering costs Deferred offering costs relating to the IPO, were capitalized and offset against proceeds upon the consummation of IPO in shareholders’ equity. z. Newly issued and recently adopted accounting pronouncements Recently adopted accounting pronouncements 1) The Company adopted ASU No. 2016-02, Leases (Topic 842), on January 1, 2019 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with its historical accounting under Topic 840. The Company elected the package of practical expedients permitted under the transition guidance, which allowed to carryforward the Company’s historical lease classification, the Company’s assessment on whether a contract was or contains a lease, and the Company’s initial direct costs for any leases that existed prior to January 1, 2019. The Company also elected to combine lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Upon adoption, the new standard resulted in an increase of $1,585 in operating lease ROU assets and corresponding liabilities on the Company’s consolidated balance sheet and did not have a material impact on the Company’s consolidated statement of income or consolidated statement of cash flows and did not have an impact on the comparative figures. Accounting pronouncements issued but not yet adopted 1) In June 2016, the FASB issued ASU 2016-13 “Financial Instruments Credit Losses Measurement of Credit Losses on Financial Instruments”. This guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance will be effective for the fiscal year beginning on January 1, 2020, including interim periods within that year. The Company does not expect to have a material impact on its consolidated financial statements.

MARKETABLE SECURITIES AND FAIR

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2019
Marketable Securities and Fair Value Measurement [Abstract]
MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS	NOTE 3 - MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS: Marketable securities as of December 31, 2019 and 2018, consisted of government bonds, corporate debt securities and certificates of deposit. These marketable securities are recorded at fair value. T December 31 2019 2018 Government bonds * 104,349 21,932 Corporate debt securities 14,023 4,600 Certificates of deposit 1,772 - Total 120,144 26,532 * As of December 31, 2019 and 2018, consists of $2,104 and $2,054 non-U.S government bonds, respectively. The Company classifies marketable securities within Level 2 because it uses alternative pricing sources and models utilizing market observable inputs to determine their fair value. See also note 2(v). The following table sets forth the Company’s financial assets as of December 31, 2019 and 2018, that are measured at fair value on a recurring basis during the period: December 31, 2019 Fair value Cost or amortized cost Gross unrealized holding loss Gross unrealized holding gains Level 2 securities: Government bonds 104,349 104,230 (38 ) 157 Certificates of deposit 1,772 1,768 - 4 Corporate debt securities 14,023 13,985 (15 ) 53 Total 120,144 119,983 (53 ) 214 December 31, 2018 Cost or Gross Fair amortized unrealized Gross unrealized value cost holding loss holding gains Level 2 securities: Government bonds 21,932 21,878 (3 ) 57 Corporate debt securities 4,600 4,606 (15 ) 9 Total 26,532 26,484 (18 ) 66 As of December 31, 2019 and 2018, the Company considered the decreases in market value on its marketable securities to be temporary in nature and did not consider any of the Company’s investments to be other-than-temporarily impaired. As of December 31, 2019 and 2018, the Company’s debt securities had the following maturity dates: December 31 2019 2018 Due within one year 32,642 12,801 1 to 2 years 41,784 9,068 2 to 3 years 45,718 2,609 3 to 4 years - 2,054 Total 120,144 26,532

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
ACCOUNTS RECEIVABLE	NOTE 4 - ACCOUNTS RECEIVABLE: Accounts receivable consist of the following: December 31 2019 2018 Trade 6,186 6,768 Notes receivable 1,248 1,138 Less - allowance for doubtful debt (432 ) (354 ) 7,002 7,552 Less - non-current accounts receivable (374 ) (544 ) Total accounts receivable 6,628 7,008

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2019
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 5 - INVENTORIES: Inventories consist of the following: December 31 2019 2018 Raw materials 2,725 2,508 Finished products 6,683 4,455 Total inventories 9,408 6,963

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	NOTE 6 - PROPERTY AND EQUIPMENT, NET: Composition of property and equipment grouped by major classifications is as follows: December 31 2019 2018 Computers 392 282 Office furniture and equipment 132 118 Molds 1,398 914 Leasehold improvements 234 149 2,156 1,463 Less: accumulated depreciation (1,221 ) (919 ) Total property and equipment, net 935 544 Total depreciation and amortization in respect of property and equipment were $302, $184 and $204 for the years ended December 31, 2019, 2018 and 2017 respectively.

OTHER INVESTMENTS

OTHER INVESTMENTS	12 Months Ended
	Dec. 31, 2019
Investments [Abstract]
OTHER INVESTMENTS	NOTE 7 – OTHER INVESTMENTS In November 2019, the Company signed a Share Purchase and Shareholders Agreement (the “SPA”) with Medimor Ltd, one of the Company’s turnkey manufacturing subcontractors (“Medimor”). Pursuant to the SPA, the Company has committed to invest an aggregate amount of $600 (the “Investment Amount”), in several closings, in consideration for up to 1,369,863 ordinary shares of Medimor (which reflects a 10.34% ownership interest in Medimor at the signing date, on a fully diluted basis), of which 955,479 ordinary shares (the “Milestone Shares”) in the amount of $418.5 (the “Milestone Shares Investment Amount”) will be issued upon and subject to the occurrence of any of the milestone events (each, a “Milestone Event”) as stated in the SPA. As of December 31, 2019, the Company has paid Medimor the full Investment Amount (which includes a non-refundable pre-payment on account of the entire Milestone Shares Investment Amount), and was issued with 414,384 ordinary shares of Medimor (the “Initial Shares Investment Amount”), which reflects a 3.37% ownership interest in Medimor, on a fully diluted basis, upon such issuance. However, as of December 31, 2019, none of the Milestone Events has occurred yet and accordingly, the Milestone Shares have not been issued to the Company. Pursuant to the provisions from the SPA, in the event that all of the Milestone Shares have not been issued to the Company within 24 months of the signing date, then any remaining balance of the prepaid Milestone Shares Investment Amount will be deducted from any payments then due or to be due in the future to Medimor from the Company in its capacity as a customer of Medimor. The Initial Shares Investment Amount is measured at cost, less impairment and adjusted for subsequent observable price changes, whereas the Milestone Shares Investment Amount is measured at cost, less any impairment.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
LEASES	NOTE 8 – LEASES In May 2018, the Company signed a new lease agreement for its headquarters in Israel which expires in December 2021. The cost under the new lease agreement is linked to the Israeli Consumer Price Index. For purposes of ensuring the Company’s obligation towards the lessor, the Company has provided the lessor with a bank guarantee of NIS 231 thousand (approximately $63). On January 13, 2019, the Company signed a supplement lease agreement, expanding its headquarters in Israel, which expires in December 2021 (“Supplement Lease Agreement”). The cost under the Supplement Lease Agreement is linked to the Israeli Consumer Price Index. For the purpose of ensuring the Company’s obligation towards the lessor, the Company has provided the lessor with an additional bank guarantee of NIS 90 thousand (approximately $25). The Company also leases vehicles for several employees in Israel for a period of three years. The Company’s U.S. subsidiary has a lease agreement for its offices that expires in August 2022. The Company’s Canadian subsidiary has a lease agreement for its offices that expires in June 2022. The lease is with a related party. The lease cost was as follows: Year ended December 31, 2019 Operating lease cost 766 Supplemental cash flow information related to leases was as follows: Year ended Operating cash flows from operating leases 786 Supplemental balance sheet information related to leases was as follows: December 31, 2019 Operating Leases Operating lease right-of-use assets 1,369 Other current liabilities 672 Operating lease liabilities 744 Total operating lease liabilities 1,416 Weighted Average Remaining Lease Term Operating leases 2.08 years Weighted Average Discount Rate Operating leases 2.75 % As of December 31, 2019, the maturities of lease liabilities were as follows: Operating Leases Year Ending December 31, 2020 687 2021 627 2022 145 Total lease payments 1,459 Less imputed interests (43 ) Total 1,416 As of December 31, 2018, the minimum lease payments of the Company, were as follows: Year ending December 31: 2019 392 2020 399 2021 405 2022 119 Total future minimum lease payments 1,315

OTHER LIABILITIES

OTHER LIABILITIES	12 Months Ended
	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
OTHER LIABILITIES	NOTE 9 - OTHER LIABILITIES: Other liabilities consist of the following: December 31 2019 2018 Employees and related expenses 8,164 5,473 Government institutions 1,539 1,232 Income tax 202 324 Other 3,300 2,136 Total other liabilities 13,205 9,165

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 10 - COMMITMENTS AND CONTINGENT LIABILITIES: a. Subcontracting agreement The Company has entered into a turnkey manufacturing agreement with its major subcontractor provider in Israel in connection with manufacturing and assembling the Company’s products. The agreement is renewed automatically every year, unless either the Company or the turnkey manufacturer gives written notice three months prior to the expiration of the term. Additionally, the Company or the turnkey manufacturer has the ability to terminate the contract at any time and for any reason with a prior written notice of four months. According to the agreement, the Company does not have a minimum order obligation but the Company provides the subcontractor a six-month rolling forecast with the projected demand for products. In case of termination of the agreement, the Company has to compensate the sub-contractor for non-returnable inventory, materials in orders that cannot be cancelled and finished products inventory. As of December 31, 2019, the subcontractor’s finished goods inventory, raw material and open orders amounted to approximately $2,884. b. Litigation and contingencies The Company was involved in various claims, legal proceedings and investigations. In January 2019, the Company entered into a settlement agreement with Syneron Medical Ltd. and Candela Corporation (“Syneron-Candela”) and Massachusetts General Hospital (“MGH”) that resolved all patent claims previously in dispute in exchange for a one-time cash payment that the Company made to Syneron-Candela and MGH in February 2019. As part of such settlement agreement, the Company entered into a sublicense agreement with Syneron-Candela and MGH that granted the Company and its subsidiaries a fully paid non-exclusive, royalty-free worldwide sublicense to practice the patents and applications previously in dispute in the licensed field. The sublicense shall continue until the expiration of the last surviving patent or application granted pursuant to the sublicense agreement. As of December 31, 2018, the Company has accrued a provision of $10,000 in connection with its legal proceedings and settlements, which was paid in February 2019.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	NOTE 11 - SHAREHOLDERS' EQUITY: a. Share Capital 1) Ordinary shares Each holder of the Company’s ordinary shares is entitled to one vote. The holders of ordinary shares are also entitled to receive dividends whenever funds are legally available, when and if declared by the Company’s Board of Directors. Since inception, the Company has not declared any dividends. In June 2019, the Company's shareholders decided to increase the authorized share capital of the Company to NIS 1,000,000 divided into 100,000,000 ordinary shares par value 0.01 NIS each. On July 24, 2019, the Company executed a 1-for-1.789 stock split (“Stock Split”) of the Company’s shares by way of an issuance of bonus shares for each share. Upon the effectiveness of the Stock Split, (i) 0.789 bonus shares were issued for each outstanding share, (ii) the number of ordinary shares into which each outstanding option to purchase ordinary shares is exercisable was proportionally increased, (iii) the exercise price of each exercisable share under such outstanding options to purchase ordinary shares was proportionately decreased, and (iv) the number of shares reserved under the Company's options plans was proportionally adjusted to accommodate the adjustment to the number of exercisable options under the Company's respective option plans. Unless otherwise indicated, and except for authorized capital, all of the share numbers, number of options to purchase ordinary shares, net income per share amounts, share prices and option exercise prices in these financial statements have been adjusted, on a retroactive basis, to the Stock Split. In August 2019, the Company completed an IPO on the Nasdaq, in which it issued 5,000,000 ordinary shares at a price per share of $14. During August 2019 the underwriters partially exercised their over-allotment of approximately $7,216 in aggregate 2) Share-based compensation On January 30, 2008, the Company’s Board of directors adopted two share option plans as follows (collectively, the “2008 Plans”): a) 2008 Israeli Option Plan (“2008 Israeli Plan”) allowing the Company to grant options to purchase ordinary shares to Israeli employees, officers, directors, consultants and service providers. b) 2008 ROW Option Plan (“2008 ROW Plan”) allowing the Company to grant options to purchase ordinary shares to non-Israeli employees, officers, directors, consultants and service providers. In June 2018, the Company’s Board of directors adopted a new incentive plan (“2018 Incentive Plan”), allowing the Company to grant options to purchase ordinary shares, restricted shares or other awards to Israeli and other non-U.S. employees, officers, directors, consultants and service providers of the Company. The 2018 Incentive Plan also includes as an appendix a sub-plan allowing the Company to grant options to purchase ordinary shares, restricted shares or other incentive awards to U.S. employees, officers, directors, consultants and service providers of the Company. Each option under 2018 Incentive Plan grants the right to exercise such option into one ordinary share of the Company. The grant of options to Israeli employees, officers and directors under the 2008 Israeli Plan and the 2018 Incentive Plan is subject to the terms stipulated by Sections 102 and 102A of the Israeli Income Tax Ordinance. Each option grant is subject to the track chosen by the Company, either Section 102 or Section 102A of the Israeli Income Tax Ordinance, and pursuant to the terms thereof, the Company is not allowed to claim as an expense for tax purposes the amounts credited to employees as benefits, including amounts recorded as salary benefits in the Company’s accounts, in respect of options granted to employees under the 2008 Israeli Plan, with the exception of the work-income benefit component, if any, determined on grant date. For consultants and service providers, grants under the 2008 Israeli Plan and the 2018 Incentive Plan are subject to Section 3(i) of the Israeli Income Tax Ordinance. Upon the adoption of the 2018 Incentive Plan, the then-current pool of options available for future grants under the 2008 Plans was canceled and returned to the Company’s authorized and un-issued share capital. In addition, any shares returning to the free pool of options under the 2008 Plans, due to options expirations or otherwise, are automatically returning to the Company's authorized and un-issued share capital. Upon adoption of the 2018 Incentive Plan, up to 1,789,000 of the Company’s authorized and unissued ordinary shares may be issued pursuant to awards under the 2018 Incentive Plan. The Company’s 2018 Incentive Plan includes an evergreen mechanism under which the number of reserved, authorized and unissued ordinary shares of the Company available for issuance of awards pursuant to the 2018 Incentive Plan shall automatically increase on an annual basis as follows: on the first business day of each calendar year beginning in 2019, the number of options equal to the lesser of (i) 800,000 ordinary shares, (ii) three percent of the number of shares outstanding as of such date or (iii) a lesser number of ordinary shares as shall be determined by the board of directors. In January 2020, the Company approved the automatic increase of the number of reserved, authorized and unissued available for issuance of awards pursuant to the 2018 Incentive Plan by additional 800,000 ordinary shares. Details Regarding Grant of Options: During 2019, the Company granted options to employees, officers, directors, consultants and service providers as follows: (i) in January the Company granted 475,875 options, (ii) in April the Company granted 112,708 options, (iii) in August the Company granted 30,000 options and (iv) in November the Company granted 132,750 options. During 2018, the Company granted options to employees, officers, directors, consultants and service providers as follows: (i) in February the Company granted 3,578 options and (ii) in September 2018, the Company granted 354,402 options. Year Ended December 31, 2019 Award amount Exercise price range Vesting period Expiration Employees, officers and directors 620,126 $7.49-$41.55 0-3 Years 7 Years Service providers and consultants 131,207 $7.49-$41.55 0-2 Years 7 Years Year Ended December 31, 2018 Award amount Exercise price range Vesting period Expiration Employees, officers and directors 212,176 $0.56-$6.32 0-2 Years 7 Years Service providers and consultants 145,804 $6.32 0-2 Years 7 Years As of December 31, 2019, 736,647 options were available for grant under the 2018 Incentive Plan. For options granted after the consolidated balance sheet date, see note 15. a) Options granted to employees, executive officers and directors Year ended December 31 2019 2018 Weighted Weighted Number average Number average of exercise of exercise Options price* Options price* Outstanding at beginning of year 6,565,592 $ 0.69 6,728,398 $ 0.53 Changes during the year: Granted 620,126 14.48 212,176 6.22 Exercised (276,759 ) 0.90 (287,204 ) 0.56 Forfeited (35,492 ) 8.93 (44,720 ) 2.86 Expired (88,556 ) 0.56 (43,058 ) 0.56 Outstanding at end of year 6,784,911 $ 1.90 6,565,592 $ 0.69 Exercisable at end of year 6,443,780 $ 0.96 6,359,323 $ 0.56 * In U.S. dollars per Ordinary Share. As of December 31, 2019, the weighted-average remaining contractual life of exercisable options was 3.25 years. The total intrinsic value of options exercised during 2019, 2018 and 2017 was approximately $3,206, $1,247 and $199, respectively. The fair value of each option granted is estimated on the date of grant using the binomial option-pricing model, with the following assumptions: Year ended December 31 2019 2018 2017 Fair value of one ordinary share $7.49-$41.55 $4.86-$6.32 $0.48-$3.12 Dividend yield 0% 0% 0% Expected volatility 46.03%-51.91% 51.2% 39% –50% Risk-free interest rate 1.62%-2.60% 2.96% 0.82% – 2.26% Early exercise multiple (“EEM”) 150% - 250% 150% - 250% 150% - 250% Contractual term 7 years 7 years 7 years The expected volatility is based on the historical volatility of comparable companies. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected term of the options granted in dollar terms. The employee termination exit rate assumption is based on current geographical data of the Company. Since the Company’s ordinary shares have been publicly traded for only a short period of time, the early exercise multiple (“EEM”) was based on academic empirical findings. The EEM of grantees in private companies is expected to be higher due to the lack of marketability that leads to a longer exercise period for options. The total fair value of employee options granted during the years ended December 31, 2019, 2018 and 2017 was $2,171, $408 and $1,301, respectively. As of December 31, 2019, the Company options b) Options granted to consultants and other service providers: Year ended December 31 2019 2018 Weighted Weighted Number average Number average of exercise of exercise options price* options price* Outstanding at beginning of year 2,826,623 $ 0.84 2,725,544 $ 0.54 Changes during the year - Granted 131,207 12.78 145,804 6.32 Exercised (339,910 ) 0.41 (44,725 ) 0.56 Expired (101,973 ) 0.56 - - Outstanding at end of year 2,515,947 $ 1.53 2,826,623 $ 0.84 Exercisable at end of year 2,488,496 $ 1.21 2,715,021 $ 0.61 * In U.S. dollars per Ordinary Share. The fair value of each option granted is estimated on the date of grant using the binomial option-pricing model, with the following assumptions: Year ended December 31 2019 2018 2017 Fair value of one ordinary share $7.49-$41.55 $6.32 $0.45-$4.11 Dividend yield 0% 0% 0% Expected volatility 46.03%-51.91% 51.2% 39% –50% Risk-free interest rate 1.71%-2.60% 2.96% 0.82% – 2.26% Early exercise multiple 0% 0% 0% Contractual term 7 years 7 years 7 years The expected volatility is based on the historical volatility of comparable companies. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected term of the options granted in dollar terms. Since the Company’s ordinary shares have been publicly traded for only a short period of time, the early exercise multiple (“EEM”) was based on academic empirical findings. The EEM of grantees in private companies is expected to be higher due to the lack of marketability that leads to a longer exercise period for options. The total fair value of non-employee options granted during the years ended December 31, 2019, 2018 and 2017 was $627, $508 and $417, respectively. As of December 31, 2019, the Company had 27,451 unvested options The total unrecognized compensation cost of non-employee options at December 31, 2019 is $372 which is expected to be recognized over a weighted average period of 0.13 years. c) The following tables summarize information concerning outstanding and exercisable options as of December 31, 2019: December 31, 2019 Options outstanding Options exercisable Number of Weighted Number of Weighted options average options average outstanding remaining exercisable remaining Exercise at end of contractual at end of contractual prices * year Life year life $ 0.20 613,628 1 613,628 1 $ 0.44 55,459 2.52 55,459 2.52 $ 0.56 7,597,220 3.35 7,597,220 3.35 $ 6.32 318,710 5.72 272,870 5.72 $ 7.49 441,883 6.02 346,839 6.02 $ 10.23 112,708 6.26 38,760 6.26 $ 14.00 30,000 6.62 7,500 6.62 $ 41.55 131,250 6.91 - - * In U.S. dollars per Ordinary Share. The aggregate intrinsic value of total vested and exercisable options as of December 31, 2019 is $325,836. d) The following table illustrates the effect of share-based compensation on the statements of income: Year ended December 31 2019 2018 2017 Cost of sales 94 25 36 Research and development expenses 179 63 21 Selling and marketing expenses 1,158 1,817 2,277 General and administrative expenses 126 42 102 1,557 1,947 2,436 b. Non-Controlling Interests i. In December 2016, the Company signed a joint venture agreement with Guangzhou Sino-Israel Bio-Industry Investment Fund (LLP) (“GIBF”), an investment fund established by the Guangzhou government, to invest in Israeli companies, pursuant to which an Equity Joint Venture Company (“JVC”) was established. According to the agreement, the Company would provide to the JVC a license to use the Company’s knowledge in exchange for a 51% interest in the JVC, and GIBF would invest (in a Chinese local currency “RMB”) an amount of RMB 50 million (approximately $7.2 million), in exchange for a 49% interest in the JVC. The investment is to be made in three installments following the achievement of specified milestones: (i) 25% of the investment was made 30 days following the investment’s closing, (ii) 35% of the investment is to be made following the initiation of a production and manufacturing line, and (iii) 40% of the investment is to be made following the sale of 10 platforms in China. The JVC will distribute the Company's products in China and develop and manufacture new products for the Chinese market under the Company’s license. In 2017, the JVC satisfied the first milestone and GIBF invested approximately $1.7 million. Additionally, the non-controlling partner in JVC had the right to convert its equity interest in the JVC in connection with an initial public offering of the Company into shares of the Company, based upon the aggregate investment made in the JVC and the price range established as part of the initial public offering process. On May 5, 2019, the non-controlling partner in the JVC signed an agreement in which it waived any and all rights, privileges and interests with regards to such conversion right (“JVC Waiver”). The JVC Waiver was conditional upon the completion of an initial public offering on or before August 31, 2019. Following the completion of the IPO on August 7, 2019, the JVC Waiver became effective. The non-controlling partner in the Company's U.K. subsidiary ("Invasix UK") had the right to convert its equity interests in Invasix UK in connection with an initial public offering of the Company into shares of the Company. The number of the Company’s ordinary shares that would have been issued to the non-controlling partner upon the conversion of its equity interest in Invasix UK would have been based on the percentage of Invasix UK's sales in relation to the total sales of the Company. On August 30, 2018, the non-controlling partner waived any and all rights, privileges and interests with regards to such conversion right (“UK Waiver”). The non-controlling partners' conversion rights were presented in the Company’s consolidated financial statements as part of the redeemable non-controlling interest, which were classified as “mezzanine”. The Company adjusted the carrying amount of its redeemable non-controlling interest to its redemption value to retained earnings. As a result of the UK Waiver, the Company reclassified into non-controlling interests the balance of UK redeemable non- controlling interest in the amount of $1,414. The remaining “mezzanine” balance as of December 31, 2018, represents the JVC’s partner right to convert. From August 30, 2018, the non-controlling partner in Invasix UK has been considered and treated as a non-controlling interest. As a result of the JVC Waiver, the Company reclassified into non-controlling interests the balance of JVC redeemable non- controlling interest in the amount of $2,317. From August 8, 2019, the non-controlling partner equity interests in JVC has been considered and treated as a non-controlling interest. ii. The changes in redeemable non-controlling interest are as follow: Year ended December 31 2019 2018 2017 Balance as of January 1 2,187 3,066 183 Adjustment to redemption value of redeemable non-controlling interest 130 535 1,154 Increases due to additional investment of redeemable non-controlling interest - - 1,729 Waiver of redeemable non-controlling interest (2,317 ) (1,414 ) - Balance as of December 31 -,- 2,187 3,066

TAXES ON INCOME

TAXES ON INCOME	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
TAXES ON INCOME	NOTE 12- TAXES ON INCOME: a. InMode Ltd. The Company is taxed according to Israeli tax laws: 1) Measurement of results for tax purposes Since 2008, the Company has measured the results of the Israeli Company for tax purposes in nominal terms in NIS. These consolidated financial statements are presented in U.S. dollars. The changes in the exchange rate of the dollar, both on an annual and a cumulative basis cause a difference between taxable income and income reflected in these consolidated financial statements. ASC 740-10-25 prohibits the recognition of deferred tax liabilities or assets that arise from differences between the financial reporting and tax bases of assets and liabilities that are re-measured from the local currency into dollars using historical exchange rates, and that result from changes in exchange rates or indexing for tax purposes. Consequently, the above-mentioned differences were not reflected in the computation of deferred tax assets and liabilities. 2) Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (hereinafter - the law) Under the Encouragement of Capital Investments Law, including Amendment No. 60 thereof as published in April 2005, by virtue of the “Approved Enterprise” or “Benefited Enterprise” status, the Israeli Company is entitled to various tax benefits as follows: a) Reduced tax rates Income derived from the Benefited Enterprise during a 10-year period commencing upon the year in which the enterprise first realizes taxable income is tax exempt, provided that the maximum period to which it is restricted by the Encouragement of Capital Investments Law has not elapsed. On 2009, the Israeli company received a tax ruling (the “Ruling”) approving its activity as a Benefited Enterprise, provided that the Israeli company meets the requirements under the Ruling. The Israeli company’s facility obtained the status of a Benefited Enterprise, which made it eligible for tax benefits for a period of up to ten years. The period of benefits of the Benefited Enterprise of the Company commenced in 2012. As of December 31, 2019, the Company’s retained earnings derived mostly from the benefits of Benefited Enterprise. In the event of a distribution of dividends (or deemed dividends) from income that was tax exempt as discussed above, the Company will be required to pay the applicable corporate tax that would otherwise have been payable on such income (25%). In addition, upon distribution of dividends from tax-exempt income, the recipient shall be subject to tax at the rate of 15% (or lower, if so provided under an applicable tax treaty), which would generally be withheld at source by the distributing company. b) Conditions for entitlement to the benefits The Israeli company entitlement to the benefits described above is subject to its fulfilling the conditions stipulated by the law, rules and regulations published thereunder, in its Benefited Enterprise as determined on the ruling received. These conditions include, among other things, that the production, directly or through subcontractors, of all the Company’s products should be performed in certain areas of Israel. If there is any failure by the Israeli company to comply with these conditions, the benefits may be cancelled and the Israeli company may be required to refund the amount of the benefits, in whole or in part, with interest. c) Amendments of the Law for the Encouragement of Capital Investments, 1959 Additional amendments to the Investment Law became effective in January 2011 and were further amended in August 2013 (the “2011 Amendment”). Under the 2011 Amendment, income derived by ‘Preferred Companies’ from ‘Preferred Enterprises’ (both as defined in the 2011 Amendment) would be subject to a uniform rate of corporate tax for an unlimited period as opposed to the incentives prior to the 2011 Amendment that were limited to income from Approved or Benefited Enterprises during their benefits period. According to the 2011 Amendment, the tax rate applicable to such income, referred to as ‘Preferred Income,’ would be 10% in areas in Israel that are designated as Development Zone “A” and 15% elsewhere in Israel in 2011 and 2012, 7% and 12.5%, respectively, in 2013, 9% and 16% respectively, in 2014, 2015 and 2016, and 7.5% and 16%, respectively, from 2017 and thereafter. Income derived by a Preferred Company from a ‘Special Preferred Enterprise’ (as defined in the Investment Law) would enjoy further reduced income tax rates for a period of ten years of 5% in Development Zone A and 8% elsewhere. As of January 1, 2014, dividends distributed from Preferred Income would subject the recipient to a 20% tax (or lower, if so provided under an applicable tax treaty), which would generally be withheld at source by the distributing company; provided, however, that dividends distributed from ‘Preferred Income’ from one Israeli corporation to another would not be subject to tax. Under the transitional provisions of the 2011 Amendment, companies may elect to irrevocably implement the 2011 Amendment with respect to their existing Approved and Benefited Enterprises while waiving benefits provided under the legislation prior to the 2011 Amendment or keep implementing the legislation prior to the 2011 Amendment. While the Company may incur additional tax liability in the event of distribution of dividends from tax exempt income generated from its Approved and Benefited Enterprises as previously described, no additional tax liability will be incurred by the Company in the event of distribution of dividends from Preferred Income. Additional amendments to the Investment Law became effective in January 2017 (the “2017 Amendment”). Under the 2017 Amendment, and provided the conditions stipulated therein are met, income derived by Preferred Companies from ‘Preferred Technological Enterprises’ (“PTE”) (as defined in the 2017 Amendment), would be subject to reduced corporate tax rates of 7.5% in Development Zone “A” and 12% elsewhere, or 6% in case of a ‘Special Preferred Technological Enterprise’ (“SPTE”) as defined in the 2017 Amendment) regardless of the company’s geographical location within Israel. A Preferred Company distributing dividends from income derived from its PTE or SPTE, would subject the recipient to a 20% tax (or lower, if so provided under an applicable tax treaty). The 2017 Amendment further provides that, in certain circumstances, a dividend distributed to a corporate shareholder who is not an Israeli resident for tax purposes would be subject to a 4% tax (inter alia, if the amount of foreign investors in the distributing company exceeds 90%). Such taxes would generally be withheld at source by the distributing company. On June 14, 2017, the Encouragement of Capital Investments Regulations (Preferred Technology Income and Capital Profits for a Technological Enterprise), 2017 (the “Regulations”) were published, which adopted Action 5 under the base erosion and profit shifting (“BEPS”) regulations. The Regulations describe, inter alia, the mechanism used to determine the calculation of the benefits under the PTE and under the SPTE Regime and determine certain requirements relating to documentation of intellectual property for the purpose of the PTE. According to these provisions, a company that complies with the terms under the PTE regime may be entitled to certain tax benefits with respect to income generated during the company’s regular course of business and derived from the preferred intangible asset (as determined in the Investments Law), excluding income derived from intangible assets used for marketing and income attributed to production activity. In the event that intangible assets used for marketing purposes generate over 10% of the PTE’s income, the relevant portion, calculated using a transfer pricing study, would be subject to regular corporate income tax. If such income does not exceed 10%, the PTE will not be required to exclude the marketing income from the PTE’s total income. The Regulations set a presumption of direct production expenses plus 10% with respect to income related to production, which can be countered by the results of a supporting transfer pricing study. Tax rates applicable to such production income expenses will be similar to the tax rates under the Preferred Enterprise regime, to the extent such income would be considered as eligible. In order to calculate the preferred income, the PTE is required to take into account the income and the research and development expenses that are attributed to each single preferred intangible asset. Nevertheless, it should be noted that the transitional provisions allow companies to take into account the income and research and development expenses attributed to all of the preferred intangible assets they have. Under the transitional provisions of the law, a company is allowed to continue to enjoy the tax benefits available under the law prior to its amendment until the end of the period of benefits, as defined in the law. In each year during the period of benefits as a Benefited Enterprise, the Company will be able to opt for application of the amendment, thereby making available the tax rates discussed above. The Company’s election to apply the amendment is irrecoverable. As of December 31, 2019, the Company’s management decided not to adopt the application of the amendment. 3) Corporate tax rate in Israel In December 2016, a tax legislation was enacted in Israel, reducing the corporate tax rate to 24% for 2017 and to 23% for 2018 and thereafter. There is no impact on the financial statements of the Company as a result of the changes in the Israeli corporate tax rate. Capital gain is subject to capital gain tax according to the corporate tax rate in the year the assets are sold. b. Subsidiaries outside of Israel Subsidiaries that are incorporated outside of Israel are assessed for taxes under the tax laws in their countries of residence. On December 22, 2017, the “Tax Cuts and Jobs Act” (the “U.S. Tax Legislation”) was enacted in the United States. Except for certain provisions, the U.S. Tax Legislation is effective for tax years beginning on or after January 1, 2018. The U.S. Tax Legislation significantly revises several sections of the US Internal Revenue Code including, among other things, lowering the corporate income tax rate from 35% to 21% effective January 1, 2018, limiting deductibility of interest expense and implementing a territorial tax system that imposes a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The Company reduced its deferred tax assets by $406 for the year ended December 31, 2017 due to the change in the statutory tax rate. c. Deferred income taxes Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the Company’s net deferred tax assets (liabilities) at December 31, 2019 and 2018 were as follows: December 31 2019 2018 Deferred tax assets in respect of: Carryforward losses on Marketable securities 200 - Subsidiary net operating loss 362 291 Other temporary differences 431 353 Share-based compensation 1,268 956 Total deferred tax asset before valuation allowance 2,261 1,600 Valuation allowance (362 ) (291 ) Total deferred tax asset 1,899 1,309 Deferred tax lability in respect to other comprehensive income (37 ) (11 ) Total deferred tax liability (37 ) (11 ) Deferred tax asset, net 1,862 1,298 Deferred taxes are computed using the tax rates expected to be in effect when those differences reverse. Since the Israeli company is entitled to a tax exemption for a period of ten years, the tax rate used in computation of deferred taxes on its timing differences is zero (except for deferred taxes on realized losses and unrealized gain and losses from marketable securities); therefore, deferred taxes are recognized mainly from the Company’s U.S. subsidiary. The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. As of each reporting date, management considers new evidence, both positive and negative, that could impact management’s view with regard to the future realization of deferred tax assets for each jurisdiction. d. Reconciliation of theoretical tax expense to actual tax expense Following is a reconciliation of the theoretical provision for income tax, assuming all income is taxed at the statutory corporate tax rate applicable to Israeli corporations, and the actual tax on income: Year ended December 31 2019 2018 2017 Income before taxes on income 62,041 23,625 9,799 Theoretical tax expenses at the statutory rate of InMode 23 % 23 % 24 % 14,270 5,434 2,352 Increase (decrease) in taxes on income due to: Benefits to the Benefited Enterprise (13,844 ) (5,162 ) (2,256 ) Different effective tax rates applicable to the Subsidiaries 49 53 87 Changes in tax rate in the United States - - 406 Valuation allowance 60 91 119 Uncertain tax position 723 771 - Non-deductible expenses and other permanent differences, mainly share based compensation expenses (437 ) 73 247 Previous year 62 - 25 883 1,260 980 e. Tax assessments In accordance with the Israel Income Tax Ordinance, as of December 31, 2019, all tax assessments on the Company and the Company’s subsidiary in Israel through tax year 2013 are considered final. A summary of open tax years by jurisdictions is presented below: Jurisdiction Years Israel 2014-2019 The United States 2016-2019 Japan 2015-2019 United Kingdom 2015-2019 Canada 2015-2019 China 2016-2019 Spain 2018-2019 India 2019 Australia 2019 f. Income before income taxes is composed of the following: Year ended December 31 2019 2018 2017 InMode Ltd. 59,320 22,049 9,400 Subsidiaries outside Israel 2,721 1,576 399 62,041 23,625 9,799 g. Tax expenses: Year ended December 31 2019 2018 2017 Current: Israel 500 3 - Subsidiaries 910 1,850 1,535 1,410 1,853 1,535 Previous year: Israel 62 - 25 62 - 25 Deferred: Israel (200 ) (94 ) - Subsidiaries (389 ) (499 ) (580 ) (589 ) (593 ) (580 ) Total taxes on income 883 1,260 980 h. Uncertain tax positions: ASC No. 740, Income Taxes, requires significant judgment in determining what constitutes an individual tax position as well as assessing the outcome of each tax position. Changes in judgment as to recognition or measurement of tax positions can materially affect the estimate of the effective tax rate and consequently, affect the operating results of the Company. The following table summarizes the activity of the Company unrecognized tax benefits: Year ended December 31 2019 2018 Balance at January 1 771 - Increase in uncertain tax positions for the current year 723 771 Balance at December 31 1,494 771

ENTITY-WIDE DISCLOSURE

ENTITY-WIDE DISCLOSURE	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
ENTITY-WIDE DISCLOSURE	NOTE 13 - ENTITY-WIDE DISCLOSURE: a. Revenue 1) Net sales by geographic area were as follows: Year ended December 31 2019 2018 2017 United States 124,199 81,063 42,642 Other 32,162 19,099 10,814 Total sales: 156,361 100,162 53,456 2) The changes in contract liabilities are as follows: Year ended December 31 2019 2018 Balance as of January 1 9,737 4,496 Increases due to issuance of new contracts, excluding amounts recognized as revenue during the period 15,428 6,302 Revenue recognized that was included in the contract liability balance at the beginning of the period (5,765 ) (1,061 ) Balance as of December 31 19,400 9,737 Contract liability presented in non-current liabilities (1) 3,813 3,982 Contract liability presented in current liabilities 15,587 5,755 (1) As of December 31, 2019, non- current deferred revenue is estimated to be recognized as following: 81% in year 2021, and the rest in year 2022. b. Long-Lived Assets December 31 2019 2018 Israel 820 450 United States 102 82 Other 13 12 935 544

RELATED PARTIES

RELATED PARTIES	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
RELATED PARTIES	NOTE 14 - RELATED PARTIES: a. The Company receives certain services from Home Skinovations Ltd., a related party. The services include an office sublease, use of certain computer hardware and switchboard infrastructure, certain software licenses and limited personnel services. The chief executive officer of the Company is also a substantial shareholder of the Company and a substantial shareholder and board member of Home Skinovations Ltd.. The Company recorded expenses related to services received from Home Skinovations Ltd. of $247, $82 and $240 for the years ended December 31, 2019, 2018 and 2017, respectively. Commencing in May 2018, the Company ceased to receive office sublease services from Home Skinovations Ltd. as a result of the Company’s new lease agreement (see note 8). b. The Company’s subsidiary in Canada receives certain services from a subsidiary of Home Skinovations Ltd. in Canada as part of a service agreement. The services include mobile phone services, an office sublease, use of certain computer hardware and switchboard infrastructure, certain software licenses and limited personnel services. In relation to these services, the Company recorded expenses in the amount of $341, $140 and $128 for the years ended December 31, 2019, 2018 and 2017, respectively. c. The Company’s subsidiaries in North America receive certain marketing services from one of the Company’s shareholders and its related party and recorded expenses related to those services in the amount of $710 and $518, for the years ended December 31, 2019 and 2018, respectively.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 15 - SUBSEQUENT EVENTS In January 2020, the Company granted 1,011,500 options to officers, employees and consultants with a vesting schedule of up to three years.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of presentation	a. Basis of presentation The Company’s consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).
Use of estimates	b. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.
Functional currency	c. Functional currency The U.S. dollar (“U.S. dollar” or “$“) is the currency of the primary economic environment in which the operations Accordingly, the functional currency of the Company is the U.S. dollar (“primary currency”) Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Balances in non- U.S. dollar currencies are translated into U.S. dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-U.S. dollar transactions and other items in the statements of income (indicated below), the following exchange rates are used: (i) for transactions - exchange rates at transaction dates or average exchange rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization) - historical exchange rates. Currency transaction gains and losses are presented in financial income or expenses, as appropriate. The functional currency of each of the Subsidiaries is the U.S. dollar
Principles of consolidation and presentation	d. Principles of consolidation and presentation The consolidated financial statements include the accounts of the Company and its Subsidiaries. Intercompany transactions and balances are eliminated in consolidation. Non-controlling interests in subsidiaries represent the equity in subsidiaries not attributable, directly or indirectly, to the Company. Non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Profit or loss and components of other comprehensive income are attributed to the Company and to non-controlling interests. Losses are attributed to non-controlling interests even if they result in a negative balance of non-controlling interests in the consolidated statements of income. The carrying amount of the redeemable non-controlling interests were based on the higher of: (a) the non-controlling interests based on the initial fair value with the addition of its share in the operating results of the relevant subsidiary net of dividend paid; or (b) the redemption value of the put option. Adjustment of the carrying amount of the redeemable non-controlling interests was charged to retained earnings. The Company treats transactions with non-controlling interests as transactions with its equity owners. Accordingly, for purchases of shares from non-controlling interests, the difference between any consideration paid and the portion acquired of the carrying value of the net assets of the subsidiary is recorded in equity.
Cash and cash equivalents	e. Cash and cash equivalents The Company considers cash equivalents to be all short-term, highly liquid investments, which include money market instruments, that are not restricted as to withdrawal or use, and short-term bank deposits with original maturities of three months or less from the date of purchase that are not restricted as to withdrawal or use and are readily convertible to known amounts of cash.
Short-term bank deposits	f. Short-term bank deposits Bank deposits with maturities of more than three months but less than one year are included in short-term deposits. Such short-term deposits bear interest at an average annual rate of approximately 2.63%-3.08% in 2018 and 0.35%-2.90% in 2019.
Marketable securities	g. Marketable securities Marketable securities consist of government bonds and corporate debt securities (together “debt securities”) and certificates of deposit measured at fair value in each reporting period. The fair value of quoted securities is based on current market value. Debt securities and certificates of deposit are classified as available-for-sale, with changes in fair value, net of taxes (if applicable), are reflected in other comprehensive income or loss. Realized gains and losses on sales of marketable debt securities as well as premium or discount amortization are included in the consolidated statements of income as finance income or expense. Unrealized losses are recorded in consolidated statements of income as finance income or expense when a decline in fair value is determined to be other than temporary. The Company classifies investments that are readily convertible to known amounts of cash and have stated maturities of three months or less from the date of purchase as cash equivalents and those with stated maturities of greater than three months as marketable securities. The Company determines the appropriate classification of its investments in marketable securities at the time of purchase. As of January 1, 2018 the Company adopted ASU 2016-01, “Financial Instruments - Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Liabilities” (“ASU 2016-01”), which relates to certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Therefore, commencing January 2018, changes in fair value of marketable equity securities and mutual funds, are reflected in the consolidated statements of income as finance income or expense. Prior to January 2018, these investments were classified as available-for-sale securities with changes in fair value, net of taxes, reflected in other comprehensive income. When such investments were sold or impaired, the accumulated fair value adjustments recognized in other comprehensive income were reclassified and included in the consolidated statements of income as finance income or expense. At the time of adoption, the Company reclassified an unrealized net gain on taxes of $316 related to the Company’s equity investments from accumulated other comprehensive income (“AOCI”) to retained earnings. The amount of $38, remaining in the AOCI at the time of adoption, relate to investments in debt securities.
Other Investments	h. Other Investments For other investments, the Company applies the measurement alternative upon the adoption of ASU 2016-01, and elected to record equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes. In this measurement alternative method, changes in the carrying value of the equity investments are reflected in current earnings. Changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Investment in convertible debt is measured at cost, less any impairment (see also note 7).
Inventories	i. Inventories Inventories include raw materials and finished products and are valued at the lower of cost or net realizable value. Cost is determined as follows: • Raw materials: first in, first out (“FIFO”) method. • Finished products: using the “moving average” basis. The moving average is calculated as each additional inventory unit is purchased. The Company regularly evaluates its ability to realize the value of inventory based on a combination of factors including the following: historical usage rates, forecasted sales or usage, estimated current and future market values and new product introductions.
Leases	j. Leases On January 1, 2019 the Company adopted ASU No. 2016-02, Leases (Topic 842), The Company determines if an arrangement is a lease at inception. Balances related to operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized as of the commencement date based on the present value of lease payments over the lease term. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. As the Company’s leases do not provide an implicit rate, the Company’s uses its estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term (see also note 2z and note 8).
Property and equipment	k. Property and equipment Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Computers 3 - 4 years Molds 4 - 10 years Equipment and furniture 10 - 17 years Leasehold improvements are amortized on a straight-line basis over the expected lease term, which is typically shorter than the estimated useful life of the improvements.
Impairment of long-lived assets	l. Impairment of long-lived assets The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the long-lived asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the sum of the expected undiscounted cash flow is less than the carrying amount of the asset, the Company recognizes an impairment loss, which is the excess of the carrying amount over the fair value of the asset, using the expected future discounted cash flows. As of December 31, 2019, 2018 and 2017, the Company did not recognize an impairment loss on its long-lived assets.
Legal and other contingencies	m. Legal and other contingencies Certain conditions may exist as of the date of the consolidated financial statements, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, if any, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Management applies the guidance in ASC 450-20, “Loss Contingencies” when assessing losses resulting from contingencies. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability is recorded as accrued expenses in the Company’s consolidated financial statements. Legal costs incurred in connection with loss contingencies are expensed as incurred. As of December 31,2018 the Company recorded a provision of $10,000 in relation to litigation that was resolved in January 2019 (see also note 10b).
Income taxes	n. Income taxes: 1) The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized, based on the weight of available positive and negative evidence. Deferred tax liabilities and assets are classified as non-current in accordance with ASU 2015‑17. 2) Upon the distribution of dividends from the tax-exempt income of a Benefited Enterprise (see also note 12a(2)), the amount distributed is subject to tax at the rate that would have been applicable had the Company not been exempted from payment thereof. The tax amount will be recorded as an income tax expense in the period in which the Company declares the dividend. As to the amount of tax that would be owed if the Company distributed all of the retained earnings that would be subject to the tax exemption, see note 12a. 3) The Company may incur an additional tax liability in the event of an inter-company dividend distribution from Foreign Subsidiaries; no additional deferred income taxes have been provided, since the Company does not expect to distribute inter-company dividends in the foreseeable future that may result in additional tax liability. 4) Taxes that would apply in the event of disposal of investments in Subsidiaries have not been taken into account in computing the deferred income taxes, as it is the Company’s intent and ability to hold these investments. 5) The Company accounts for uncertain tax positions in accordance with ASC 740-10. ASC 740‑10 contains a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit of the largest amount that is more than 50% (cumulative probability) likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits under taxes on income (tax benefit).
Share-based compensation	o. Share-based compensation The Company grants share options to its employees, directors and non-employees in consideration for services rendered. See note 11(a)(2) for details on outstanding share capital. The Company accounts for share-based payment awards classified as equity awards using the grant-date fair value method. The fair value at grant-date of the issued equity award is recognized as an expense on a straight-line basis over the requisite service period, net of estimated forfeitures. The fair value of each share-based payment granted is estimated using the Binomial Model. The Company estimates forfeitures based on historical experience and anticipated future conditions at the time of grant and revises such estimates in subsequent periods if actual forfeitures differ from those estimates. The Company elected to recognize share-based compensation cost for awards with only service conditions that have a graded vesting schedule using the straight-line method based on the multiple-option award approach. The Company applies ASU 2018-07 (Topic 718) that expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Under the provision of the amendment, the Company measures share-based compensation to non-employees in the same manner (except for certain exceptions) as share-based compensation to employees. Prior to January 1, 2018, when options were granted as consideration for services provided by consultants and other non-employees, the grant was accounted for based on the fair value of the consideration received or the fair value of the options issued, whichever is more reliably measurable. The fair value of the options granted was measured on a final basis at the end of the related service period and recognized over the related service period using the straight-line method.
Revenue recognition	p. Revenue recognition The Company applies ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) Identify the contract(s) with a customer; (ii) Identify the performance obligations in the contract. The Company determined that its arrangements are generally comprised of the following elements that are recognized as separate performance obligations: products, consumables and extended warranties. (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract. The Company estimates the standalone selling prices of the services to be provided based on expected pricing of the service contract purchased on a standalone basis and uses the residual approach to estimate the selling price of the products; and (v) Recognize revenue when (or as) the performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer, after considering any price concession expected to be provided to the customer, when applicable. At contract inception, the Company assesses the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company uses the following practical expedients that are permitted under the rules: • The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in sales and marketing expenses. • The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The following is a description of the principal activities from which the Company generates its revenue. Product Revenue, Net Revenues from product sales are recognized when the customer obtains control over the Company’s product, typically upon shipment to the customer. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. Payment terms and conditions vary by customer. The Company’s standard terms for end users usually require of payment upon delivery and for distributors require 50% down payment and 50% payment within 30 days from the invoice date. The Company may enter into installment sales contracts with end users in North America that provide them with long-term (generally up to 60 months) financing for the purchase of the Company’s products. The interest rate used in these contracts reflects the credit characteristics of the party receiving financing in the contract, as well as any collateral or security provided by the customer. Interest income on these receivables is recognized as finance income and earned over the terms of the contract. Variable consideration mainly includes price concessions related to installment sales contracts. The Company recognizes any variable consideration at the time that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company does not grant a right of return, refund, cancelation or termination. From time to time, the Company participates in its customers' marketing activities and deducts such amounts from revenue. Service Revenue The Company also generates revenues from long-term maintenance contracts (“Extended Warranty”). Revenue from Extended Warranty is recognized ratably, on a straight-line basis, over the period of the applicable service contract. These maintenance agreements are included in contract liabilities. Revenue from repairs performed in the absence of Extended Warranty is recognized when the related services are performed. The Company classifies the portion of contract liabilities not expected to be earned in the subsequent 12 months as long-term.
Allowance for doubtful accounts	q. Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. The Company reviews the accounts receivable on a periodic basis and records an allowance when there is doubt as to the collectability of individual balances during the period in which such loss is determined to be probable based on an assessment of specific evidence indicating doubtful collection, historical experience, account balance aging and prevailing economic conditions. Doubtful account balances are written off and deducted from the allowance when the receivable is deemed uncollectible, after all collection efforts have been exhausted and the potential for recovery is considered remote.
Warranty reserve	r. Warranty reserve The Company provides a one-year standard warranty for its products. The Company records a provision for the estimated cost to repair or replace products under warranty at the time of sale. Factors that affect the Company’s warranty reserve include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The following table sets forth activity in the Company’s accrued warranty account for each of the years ended December 31, 2019, 2018 and 2017, respectively: 2019 2018 2017 Balance at beginning of year 706 380 355 Cost incurred (756 ) (1,009 ) (547 ) Expense recognized 522 1,335 572 Balance at end of year 472 706 380
Cost of revenues	s. Cost of revenues Cost of revenue consists of products purchased from turnkey sub-contractors which are responsible for the production of most of the Company’s products under the Company’s directions and supervision, raw materials for in-house assembly line, shipping and handling costs to customers and to subsidiaries, salary, employee-related expenses and overhead expenses of internal assembly line and service costs associate with warranty.
Research and development costs	t. Research and development costs Research and development costs are expensed as incurred and includes salaries and employee-related expenses, overhead expenses, material and third-party contractor’s charges related to product development, regulatory affairs and clinical studies.
Net income per share	u. Net income per share Basic earnings per share are computed by dividing net income attributed to InMode Ltd. shareholders by the weighted average number of the Company’s ordinary shares, par value NIS 0.01 per share, outstanding for each period. For the diluted earnings per share calculation, the weighted average number of shares outstanding during the year is adjusted for the average number of shares that are potentially issuable in connection with employee share-based payment, using the treasury stock method. The Company deducts the accretion of the redeemable non-controlling interest in computing the basic and diluted earnings per share.
Fair value measurement	v. Fair value measurement The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In the absence of active markets for identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The fair value of the financial instruments included in the working capital of the Company is usually identical or close to their carrying value. The three levels of inputs that may be used to measure fair value are as follows: Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 - Observable prices that are based on identical or similar instruments not quoted on active markets, but corroborated by observable market data, or quoted prices for similar instruments in active markets. Level 3 - Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The Company maintains policies and procedures to determine the fair value of financial assets and liabilities using what it considers to be the most relevant and reliable market data available.
Segments	w. Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. The Company’s chief operating decision-maker evaluates the performance of its business based on financial data consistent with the presentation in the accompanying financial statements. The Company concluded that its unified business is conducted globally and accordingly represents one operating segment. As of December 31, 2019 and 2018, most of the Company’s long-lived assets were maintained in Israel. Regarding details relating to revenue and long-lived assets by geography. See note 13.
Employee severance benefits	x. Employee severance benefits The Company is required to make severance payments upon dismissal of an employee or upon termination of employment in certain circumstances. In accordance with the current employment terms with all of its employees (Section 14 of the Israeli Severance Pay Law, 1963) located in Israel, the Company makes regular deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s full retirement benefit obligation. The Company is relieved from any severance pay liability with respect to each such employee after it makes the payments on behalf of the employee. The liability accrued in respect of these employees and the amounts funded, as of the respective agreement dates, are not reflected on the Company’s consolidated balance sheet, as the amounts funded are not under the control and management of the Company and the pension or severance pay risks have been irrevocably transferred to the applicable insurance companies. The amounts of severance payment expenses were $242, $174 and $154 and for the years ended December 31, 2019, 2018 and 2017 respectively. The Company expects to contribute approximately $ 270 in the year ending December 31, 2020 to insurance companies in connection with its expected severance liabilities for the year.
Deferred offering costs	y. Offering costs Deferred offering costs relating to the IPO, were capitalized and offset against proceeds upon the consummation of IPO in shareholders’ equity.
Newly issued and recently adopted accounting pronouncements	z. Newly issued and recently adopted accounting pronouncements Recently adopted accounting pronouncements 1) The Company adopted ASU No. 2016-02, Leases (Topic 842), on January 1, 2019 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with its historical accounting under Topic 840. The Company elected the package of practical expedients permitted under the transition guidance, which allowed to carryforward the Company’s historical lease classification, the Company’s assessment on whether a contract was or contains a lease, and the Company’s initial direct costs for any leases that existed prior to January 1, 2019. The Company also elected to combine lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Upon adoption, the new standard resulted in an increase of $1,585 in operating lease ROU assets and corresponding liabilities on the Company’s consolidated balance sheet and did not have a material impact on the Company’s consolidated statement of income or consolidated statement of cash flows and did not have an impact on the comparative figures. Accounting pronouncements issued but not yet adopted 1) In June 2016, the FASB issued ASU 2016-13 “Financial Instruments Credit Losses Measurement of Credit Losses on Financial Instruments”. This guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance will be effective for the fiscal year beginning on January 1, 2020, including interim periods within that year. The Company does not expect to have a material impact on its consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Schedule of Property and Equipment Estimated Useful Lives	Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Computers 3 - 4 years Molds 4 - 10 years Equipment and furniture 10 - 17 years
Schedule of Accrued Warranty	The following table sets forth activity in the Company’s accrued warranty account for each of the years ended December 31, 2019, 2018 and 2017, respectively: 2019 2018 2017 Balance at beginning of year 706 380 355 Cost incurred (756 ) (1,009 ) (547 ) Expense recognized 522 1,335 572 Balance at end of year 472 706 380

MARKETABLE SECURITIES AND FAI_2

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2019
Marketable Securities and Fair Value Measurement [Abstract]
Schedule of Marketable Securities	T December 31 2019 2018 Government bonds * 104,349 21,932 Corporate debt securities 14,023 4,600 Certificates of deposit 1,772 - Total 120,144 26,532 * As of December 31, 2019 and 2018, consists of $2,104 and $2,054 non-U.S government bonds, respectively.
Schedule of Financial Assets Measured at Fair Value on Recurring Basis	The following table sets forth the Company’s financial assets as of December 31, 2019 and 2018, that are measured at fair value on a recurring basis during the period: December 31, 2019 Fair value Cost or amortized cost Gross unrealized holding loss Gross unrealized holding gains Level 2 securities: Government bonds 104,349 104,230 (38 ) 157 Certificates of deposit 1,772 1,768 - 4 Corporate debt securities 14,023 13,985 (15 ) 53 Total 120,144 119,983 (53 ) 214 December 31, 2018 Cost or Gross Fair amortized unrealized Gross unrealized value cost holding loss holding gains Level 2 securities: Government bonds 21,932 21,878 (3 ) 57 Corporate debt securities 4,600 4,606 (15 ) 9 Total 26,532 26,484 (18 ) 66
Schedule of Debt Securities on Maturity	As of December 31, 2019 and 2018, the Company’s debt securities had the following maturity dates: December 31 2019 2018 Due within one year 32,642 12,801 1 to 2 years 41,784 9,068 2 to 3 years 45,718 2,609 3 to 4 years - 2,054 Total 120,144 26,532

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Schedule of Accounts Receivable	Accounts receivable consist of the following: December 31 2019 2018 Trade 6,186 6,768 Notes receivable 1,248 1,138 Less - allowance for doubtful debt (432 ) (354 ) 7,002 7,552 Less - non-current accounts receivable (374 ) (544 ) Total accounts receivable 6,628 7,008

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following: December 31 2019 2018 Raw materials 2,725 2,508 Finished products 6,683 4,455 Total inventories 9,408 6,963

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Composition of property and equipment grouped by major classifications is as follows: December 31 2019 2018 Computers 392 282 Office furniture and equipment 132 118 Molds 1,398 914 Leasehold improvements 234 149 2,156 1,463 Less: accumulated depreciation (1,221 ) (919 ) Total property and equipment, net 935 544

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Schedule of Lease Expense	The lease cost was as follows: Year ended December 31, 2019 Operating lease cost 766
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: Year ended Operating cash flows from operating leases 786
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases was as follows: December 31, 2019 Operating Leases Operating lease right-of-use assets 1,369 Other current liabilities 672 Operating lease liabilities 744 Total operating lease liabilities 1,416 Weighted Average Remaining Lease Term Operating leases 2.08 years Weighted Average Discount Rate Operating leases 2.75 %
Schedule of Maturities of Lease Liabilities	As of December 31, 2019, the maturities of lease liabilities were as follows: Operating Leases Year Ending December 31, 2020 687 2021 627 2022 145 Total lease payments 1,459 Less imputed interests (43 ) Total 1,416
Schedule of Minimum Lease Payments	As of December 31, 2018, the minimum lease payments of the Company, were as follows: Year ending December 31: 2019 392 2020 399 2021 405 2022 119 Total future minimum lease payments 1,315

OTHER LIABILITIES (Tables)

OTHER LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
Schedule of Other Liabilities	Other liabilities consist of the following: December 31 2019 2018 Employees and related expenses 8,164 5,473 Government institutions 1,539 1,232 Income tax 202 324 Other 3,300 2,136 Total other liabilities 13,205 9,165

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Options Granted	During 2019, the Company granted options to employees, officers, directors, consultants and service providers as follows: (i) in January the Company granted 475,875 options, (ii) in April the Company granted 112,708 options, (iii) in August the Company granted 30,000 options and (iv) in November the Company granted 132,750 options. During 2018, the Company granted options to employees, officers, directors, consultants and service providers as follows: (i) in February the Company granted 3,578 options and (ii) in September 2018, the Company granted 354,402 options. Year Ended December 31, 2019 Award amount Exercise price range Vesting period Expiration Employees, officers and directors 620,126 $7.49-$41.55 0-3 Years 7 Years Service providers and consultants 131,207 $7.49-$41.55 0-2 Years 7 Years Year Ended December 31, 2018 Award amount Exercise price range Vesting period Expiration Employees, officers and directors 212,176 $0.56-$6.32 0-2 Years 7 Years Service providers and consultants 145,804 $6.32 0-2 Years 7 Years
Schedule of Outstanding and Execisable Options	The following tables summarize information concerning outstanding and exercisable options as of December 31, 2019: December 31, 2019 Options outstanding Options exercisable Number of Weighted Number of Weighted options average options average outstanding remaining exercisable remaining Exercise at end of contractual at end of contractual prices * year Life year life $ 0.20 613,628 1 613,628 1 $ 0.44 55,459 2.52 55,459 2.52 $ 0.56 7,597,220 3.35 7,597,220 3.35 $ 6.32 318,710 5.72 272,870 5.72 $ 7.49 441,883 6.02 346,839 6.02 $ 10.23 112,708 6.26 38,760 6.26 $ 14.00 30,000 6.62 7,500 6.62 $ 41.55 131,250 6.91 - - * In U.S. dollars per Ordinary Share.
Schedule of Share Based Compensation Expense	The following table illustrates the effect of share-based compensation on the statements of income: Year ended December 31 2019 2018 2017 Cost of sales 94 25 36 Research and development expenses 179 63 21 Selling and marketing expenses 1,158 1,817 2,277 General and administrative expenses 126 42 102 1,557 1,947 2,436
Schedule of Changes in Redeemable Non Controlling Interest	The changes in redeemable non-controlling interest are as follow: Year ended December 31 2019 2018 2017 Balance as of January 1 2,187 3,066 183 Adjustment to redemption value of redeemable non-controlling interest 130 535 1,154 Increases due to additional investment of redeemable non-controlling interest - - 1,729 Waiver of redeemable non-controlling interest (2,317 ) (1,414 ) - Balance as of December 31 -,- 2,187 3,066
Employees, officers and directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Options Granted	Options granted to employees, executive officers and directors Year ended December 31 2019 2018 Weighted Weighted Number average Number average of exercise of exercise Options price* Options price* Outstanding at beginning of year 6,565,592 $ 0.69 6,728,398 $ 0.53 Changes during the year: Granted 620,126 14.48 212,176 6.22 Exercised (276,759 ) 0.90 (287,204 ) 0.56 Forfeited (35,492 ) 8.93 (44,720 ) 2.86 Expired (88,556 ) 0.56 (43,058 ) 0.56 Outstanding at end of year 6,784,911 $ 1.90 6,565,592 $ 0.69 Exercisable at end of year 6,443,780 $ 0.96 6,359,323 $ 0.56 * In U.S. dollars per Ordinary Share.
Schedule of Assumptions Used to Calculate Fair Value of Options Granted	The fair value of each option granted is estimated on the date of grant using the binomial option-pricing model, with the following assumptions: Year ended December 31 2019 2018 2017 Fair value of one ordinary share $7.49-$41.55 $4.86-$6.32 $0.48-$3.12 Dividend yield 0% 0% 0% Expected volatility 46.03%-51.91% 51.2% 39% –50% Risk-free interest rate 1.62%-2.60% 2.96% 0.82% – 2.26% Early exercise multiple (“EEM”) 150% - 250% 150% - 250% 150% - 250% Contractual term 7 years 7 years 7 years
Service providers and consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Options Granted	Options granted to consultants and other service providers: Year ended December 31 2019 2018 Weighted Weighted Number average Number average of exercise of exercise options price* options price* Outstanding at beginning of year 2,826,623 $ 0.84 2,725,544 $ 0.54 Changes during the year - Granted 131,207 12.78 145,804 6.32 Exercised (339,910 ) 0.41 (44,725 ) 0.56 Expired (101,973 ) 0.56 - - Outstanding at end of year 2,515,947 $ 1.53 2,826,623 $ 0.84 Exercisable at end of year 2,488,496 $ 1.21 2,715,021 $ 0.61 * In U.S. dollars per Ordinary Share.
Schedule of Assumptions Used to Calculate Fair Value of Options Granted	The fair value of each option granted is estimated on the date of grant using the binomial option-pricing model, with the following assumptions: Year ended December 31 2019 2018 2017 Fair value of one ordinary share $7.49-$41.55 $6.32 $0.45-$4.11 Dividend yield 0% 0% 0% Expected volatility 46.03%-51.91% 51.2% 39% –50% Risk-free interest rate 1.71%-2.60% 2.96% 0.82% – 2.26% Early exercise multiple 0% 0% 0% Contractual term 7 years 7 years 7 years

TAXES ON INCOME (Tables)

TAXES ON INCOME (Tables)	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets (liabilities)	The components of the Company’s net deferred tax assets (liabilities) at December 31, 2019 and 2018 were as follows: December 31 2019 2018 Deferred tax assets in respect of: Carryforward losses on Marketable securities 200 - Subsidiary net operating loss 362 291 Other temporary differences 431 353 Share-based compensation 1,268 956 Total deferred tax asset before valuation allowance 2,261 1,600 Valuation allowance (362 ) (291 ) Total deferred tax asset 1,899 1,309 Deferred tax lability in respect to other comprehensive income (37 ) (11 ) Total deferred tax liability (37 ) (11 ) Deferred tax asset, net 1,862 1,298
Schedule of Reconciliation of Theoretical Provision For Income Tax	Following is a reconciliation of the theoretical provision for income tax, assuming all income is taxed at the statutory corporate tax rate applicable to Israeli corporations, and the actual tax on income: Year ended December 31 2019 2018 2017 Income before taxes on income 62,041 23,625 9,799 Theoretical tax expenses at the statutory rate of InMode 23 % 23 % 24 % 14,270 5,434 2,352 Increase (decrease) in taxes on income due to: Benefits to the Benefited Enterprise (13,844 ) (5,162 ) (2,256 ) Different effective tax rates applicable to the Subsidiaries 49 53 87 Changes in tax rate in the United States - - 406 Valuation allowance 60 91 119 Uncertain tax position 723 771 - Non-deductible expenses and other permanent differences, mainly share based compensation expenses (437 ) 73 247 Previous year 62 - 25 883 1,260 980
Summary of open tax years	A summary of open tax years by jurisdictions is presented below: Jurisdiction Years Israel 2014-2019 The United States 2016-2019 Japan 2015-2019 United Kingdom 2015-2019 Canada 2015-2019 China 2016-2019 Spain 2018-2019 India 2019 Australia 2019
Schedule of Income Before Income Taxes	Income before income taxes is composed of the following: Year ended December 31 2019 2018 2017 InMode Ltd. 59,320 22,049 9,400 Subsidiaries outside Israel 2,721 1,576 399 62,041 23,625 9,799
Schedule of Tax Expenses	Tax expenses: Year ended December 31 2019 2018 2017 Current: Israel 500 3 - Subsidiaries 910 1,850 1,535 1,410 1,853 1,535 Previous year: Israel 62 - 25 62 - 25 Deferred: Israel (200 ) (94 ) - Subsidiaries (389 ) (499 ) (580 ) (589 ) (593 ) (580 ) Total taxes on income 883 1,260 980
Schedule of Unrecognized Tax Benefits	The following table summarizes the activity of the Company unrecognized tax benefits: Year ended December 31 2019 2018 Balance at January 1 771 - Increase in uncertain tax positions for the current year 723 771 Balance at December 31 1,494 771

ENTITY-WIDE DISCLOSURE (Tables)

ENTITY-WIDE DISCLOSURE (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Schedule of Net Sales by Geographic Area	Net sales by geographic area were as follows: Year ended December 31 2019 2018 2017 United States 124,199 81,063 42,642 Other 32,162 19,099 10,814 Total sales: 156,361 100,162 53,456
Schedule of Changes in Contract Liabilities	The changes in contract liabilities are as follows: Year ended December 31 2019 2018 Balance as of January 1 9,737 4,496 Increases due to issuance of new contracts, excluding amounts recognized as revenue during the period 15,428 6,302 Revenue recognized that was included in the contract liability balance at the beginning of the period (5,765 ) (1,061 ) Balance as of December 31 19,400 9,737 Contract liability presented in non-current liabilities (1) 3,813 3,982 Contract liability presented in current liabilities 15,587 5,755 (1) As of December 31, 2019, non- current deferred revenue is estimated to be recognized as following: 81% in year 2021, and the rest in year 2022.
Schedule of Long-Lived Assets	December 31 2019 2018 Israel 820 450 United States 102 82 Other 13 12 935 544

GENERAL (Details)

GENERAL (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2019$ / sharesshares	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2019₪ / shares	Aug. 31, 2019₪ / shares	Jun. 30, 2019₪ / shares	Dec. 31, 2018₪ / shares
Issuance of shares | shares	500,000
Ordinary shares, par value | ₪ / shares					₪ 0.01		₪ 0.01	₪ 0.01
Proceeds from initial public offering | $		$ 69,784
Number of subsidiaries		8
United Kingdom [Member]
Percentage of interest in subsidiaries					51.00%
China [Member]
Percentage of interest in subsidiaries					51.00%
IPO [Member]
Issuance of shares | shares	5,000,000
Ordinary shares, par value | ₪ / shares						₪ 0.01
Price per share | $ / shares	$ 14

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2019₪ / shares	Jun. 30, 2019₪ / shares	Dec. 31, 2018₪ / shares
Provision for litigation			$ 10,000
Ordinary shares, par value | ₪ / shares					₪ 0.01	₪ 0.01	₪ 0.01
Reclassified unrealized gain net of tax accumulated other comprehensive income		316
Amount remaining accumulated other comprehensive income		38
Increase operating lease right-of-use		1,585
Amounts of severance payment expenses		$ 242	$ 174	$ 154
Subsequent Event [Member]
Amounts of severance payment expenses	$ 270
Minimum [Member]
Short-term deposits annual interest rate		0.35%	2.63%
Maximum [Member]
Short-term deposits annual interest rate		2.90%	3.08%

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Estimated Useful Lives) (Details)	12 Months Ended
	Dec. 31, 2019
Computers [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	3 - 4 years
Molds [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	4 - 10 years
Equipment and furniture [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	10 - 17 years

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES (Schedule of Accrued Warranty) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Balance at beginning of year	$ 706	$ 380	$ 355
Costs incurred	(756)	(1,009)	(547)
Expense recognized	522	1,335	572
Balance at end of year	$ 472	$ 706	$ 380

MARKETABLE SECURITIES AND FAI_3

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Marketable Securities	$ 120,144	$ 26,532
Non US Government bonds [Member]
Marketable Securities	$ 2,104	$ 2,054

MARKETABLE SECURITIES AND FAI_4

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Schedule Of Marketable Securities) (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
Marketable Securities		$ 120,144	$ 26,532
Government bonds [Member]
Marketable Securities	[1]	104,349	21,932
Corporate Debt Securities [Member]
Marketable Securities		14,023	4,600
Certificates of Deposit [Member]
Marketable Securities		$ 1,772
[1]	As of December 31, 2019 and 2018, consists of $2,104 and $2,054 non-U.S government bonds, respectively.

MARKETABLE SECURITIES AND FAI_5

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Schedule of Financial Assets Measured at Fair Value) (Details) - Level 2 Securities [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value	$ 120,144	$ 26,532
Cost or amortized cost	119,983	26,484
Gross unrealized holding loss	(53)	(18)
Gross unrealized holding gains	214	66
Government bonds [Member]
Fair Value	104,349	21,932
Cost or amortized cost	104,230	21,878
Gross unrealized holding loss	(38)	(3)
Gross unrealized holding gains	157	57
Certificates of Deposit [Member]
Fair Value	1,772
Cost or amortized cost	1,768
Gross unrealized holding loss
Gross unrealized holding gains	4
Corporate Debt Securities [Member]
Fair Value	14,023	4,600
Cost or amortized cost	13,985	4,606
Gross unrealized holding loss	(15)	(15)
Gross unrealized holding gains	$ 53	$ 9

MARKETABLE SECURITIES AND FAI_6

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Schedule of Debt Securities on Maturity) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Marketable Securities and Fair Value Measurement [Abstract]
Due within one year	$ 32,642	$ 12,801
1 to 2 years	41,784	9,068
2 to 3 years	45,718	2,609
3 to 4 years		2,054
Total	$ 120,144	$ 26,532

ACCOUNTS RECEIVABLE (Schedule o

ACCOUNTS RECEIVABLE (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Trade	$ 6,186	$ 6,768
Notes receivable	1,248	1,138
Less - allowance for doubtful debt	(432)	(354)
Notes And Loans Receivable Net	7,002	7,552
Less - non-current accounts receivable	(374)	(544)
Total accounts receivable	$ 6,628	$ 7,008

INVENTORIES (Schedule of Invent

INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 2,725	$ 2,508
Finished products	6,683	4,455
Total inventories	$ 9,408	$ 6,963

PROPERTY AND EQUIPMENT, NET (Sc

PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	$ 2,156	$ 1,463
Less: accumulated depreciation	(1,221)	(919)
Total property and equipment, net	935	544
Depreciation and amortization	302	184	$ 204
Computers [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	392	282
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	132	118
Molds [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	1,398	914
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	$ 234	$ 149

OTHER INVESTMENTS (Details)

OTHER INVESTMENTS (Details)	Nov. 30, 2019USD ($)shares
Medimor Ltd [Member]
Investment Amount | $	$ 600
Ordinary shares of Medimor	1,369,863
Ownership interest	10.34%
Milestone Shares [Member]
Investment Amount | $	$ 419
Ordinary shares of Medimor	955,479
Medimor [Member]
Ordinary shares of Medimor	414,384
Ownership interest	3.37%

LEASES (Narrative) (Details)

LEASES (Narrative) (Details) ₪ in Thousands, $ in Thousands	Jan. 13, 2019USD ($)	Jan. 13, 2019ILS (₪)	May 31, 2018USD ($)	May 31, 2018ILS (₪)	Dec. 31, 2019
Bank guarantee | $	$ 25		$ 63
U.S Subsidiary [Member]
Lease expires					August 2022
Canadian Subsidiary [Member]
Lease expires					June 2022
NIS [Member]
Lease expires	December 2021	December 2021	December 2021	December 2021
Bank guarantee | ₪		₪ 90		₪ 231

LEASES (Schedule of Lease Expen

LEASES (Schedule of Lease Expense) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 766

LEASES (Schedule of Supplementa

LEASES (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 786

LEASES (Schedule of Supplemen_2

LEASES (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Operating Leases
Operating lease right-of-use assets	$ 1,369
Other current liabilities	672
Operating lease liabilities	744
Total operating lease liabilities	$ 1,416
Weighted Average Remaining Lease Term Operating leases	2 years 29 days
Weighted Average Discount Rate Operating leases	2.75%

LEASES (Schedule of Maturities

LEASES (Schedule of Maturities of Lease Liabilities) (Details) $ in Thousands	Dec. 31, 2019USD ($)
Leases [Abstract]
2020	$ 687
2021	627
2022	145
Total lease payments	1,459
Less imputed interests	(43)
Total operating lease liabilities	$ 1,416

LEASES (Schedule of Minimum Lea

LEASES (Schedule of Minimum Lease Payments) (Details) $ in Thousands	Dec. 31, 2019USD ($)
Leases [Abstract]
2019	$ 392
2020	399
2021	405
2022	119
Total future minimum lease payments	$ 1,315

OTHER LIABILITIES (Schedule Of

OTHER LIABILITIES (Schedule Of Other Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Employees and related expenses	$ 8,164	$ 5,473
Government institutions	1,539	1,232
Income Tax	202	324
Other	3,300	2,136
Total other liabilities	$ 13,205	$ 9,165

COMMITMENTS AND CONTINGENT LI_2

COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Supply and open orders commitment	$ 2,884
Accrued provision for legal proceedings and settlements		$ 10,000

SHAREHOLDERS' EQUITY (Narrative

SHAREHOLDERS' EQUITY (Narrative) (Details) ₪ / shares in Units, $ / shares in Units, ₪ in Thousands, $ in Thousands

Jul. 24, 2019shares

Jan. 31, 2020shares

Nov. 30, 2019shares

Aug. 31, 2019$ / sharesshares

Apr. 30, 2019shares

Jan. 31, 2019shares

Sep. 30, 2018shares

Feb. 28, 2018shares

Dec. 31, 2019USD ($)shares

Dec. 31, 2018USD ($)shares

Dec. 31, 2017USD ($)

Dec. 31, 2016USD ($)

Dec. 31, 2019₪ / shares

Aug. 31, 2019₪ / shares

Jun. 30, 2019ILS (₪)₪ / sharesshares

Dec. 31, 2018₪ / shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Ordinary shares, par value | ₪ / shares

₪ 0.01

₪ 0.01

₪ 0.01

Stock split

1-for-1.789

Bonus share issue per outstanding share | shares

0.789

Issuance of shares | shares

500,000

Proceeds from initial public offering

$ 69,784

IPO expenses

$ 7,216

Shares authorized | shares

100,000,000

100,000,000

100,000,000

Shares authorized amount | ₪

₪ 1,000,000

Waiver of redeemable non controlling interest

$ (2,317)

$ (1,414)

Guangzhou Sino Israel Bio Industry Investment Fund LLP [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Ownership interest

51.00%

Payment to purchase licence

1,700

$ 7,200

Ownership interest exchange

49.00%

Waiver of redeemable non controlling interest

$ 2,317

Guangzhou Sino Israel Bio Industry Investment Fund LLP [Member] | RMB [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Payment to purchase licence

$ 50,000

Invasix UK [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Waiver of redeemable non controlling interest

1,414

2018 Incentive Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Issuance of shares | shares

800,000

Shares authorized | shares

1,789,000

Number of options available for grant | shares

736,647

Aggregate intrinsic value

$ 325,836

2018 Incentive Plan [Member] | Employees and Consultants [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock options granted | shares

112,708

475,875

3,578

354,402

2018 Incentive Plan [Member] | Director [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock options granted | shares

132,750

30,000

2018 Incentive Plan [Member] | Employees [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted average remaining contractual life

3 years 2 months 30 days

Total intrinsic value of options exercised

$ 3,206

1,247

199

Fair value of options granted

$ 2,171

408

1,301

Unvested options | shares

341,131

Unrecognized compensation expense

$ 1,626

Unrecognized compensation cost, recognition period

10 months 21 days

2018 Incentive Plan [Member] | Consultants and Service Providers [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Fair value of options granted

$ 627

$ 508

$ 417

Unvested options | shares

27,451

Unrecognized compensation expense

$ 372

Unrecognized compensation cost, recognition period

1 month 16 days

2018 Incentive Plan [Member] | Subsequent Event [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Issuance of shares | shares

800,000

IPO [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Ordinary shares, par value | ₪ / shares

₪ 0.01

Issuance of shares | shares

5,000,000

Price per share | $ / shares

$ 14

SHAREHOLDERS' EQUITY (Schedule

SHAREHOLDERS' EQUITY (Schedule Of Grant of Options) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Employees, officers and directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount	$ 620,126	$ 212,176
Exercise price range, Lower Range	$ 7.49	$ 0.56
Exercise price range, Upper Range	$ 41.55	$ 6.32
Expiration	7 years	7 years
Employees, officers and directors [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	0 years	0 years
Employees, officers and directors [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years	2 years
Service providers and consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount	$ 131,207	$ 145,804
Exercise price range, Lower Range	$ 7.49
Exercise price range, Upper Range	$ 41.55	$ 6.32
Expiration	7 years	7 years
Service providers and consultants [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	0 years	0 years
Service providers and consultants [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years	2 years

SHAREHOLDERS' EQUITY (Schedul_2

SHAREHOLDERS' EQUITY (Schedule Of Options Granted) (Details) - $ / shares		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Employees, officers and directors [Member]
Number of options
Outstanding at beginning of year		6,565,592	6,728,398
Changes during the year:
Granted		620,126	212,176
Exercised		(276,759)	(287,204)
Forfeited		(35,492)	(44,720)
Expired		(88,556)	(43,058)
Outstanding at end of year		6,784,911	6,565,592
Exercisable at end of year		6,443,780	6,359,323
Weighted average exercise price
Outstanding at beginning of year	[1]	$ 0.69	$ 0.53
Changes during the year:
Granted	[1]	14.48	6.22
Exercised	[1]	0.90	0.56
Forfeited	[1]	8.93	2.86
Expired	[1]	0.56	0.56
Outstanding at end of year	[1]	1.90	0.69
Exercisable at end of year	[1]	$ 0.96	$ 0.56
Service providers and consultants [Member]
Number of options
Outstanding at beginning of year		2,826,623	2,725,544
Changes during the year:
Granted		131,207	145,804
Exercised		(339,910)	(44,725)
Expired		(101,973)
Outstanding at end of year		2,515,947	2,826,623
Exercisable at end of year		2,488,496	2,715,021
Weighted average exercise price
Outstanding at beginning of year	[1]	$ 0.84	$ 0.54
Changes during the year:
Granted	[1]	12.78	6.32
Exercised	[1]	0.41	0.56
Expired	[1]	0.56
Outstanding at end of year	[1]	1.53	0.84
Exercisable at end of year	[1]	$ 1.21	$ 0.61
[1]	In U.S. dollars per Ordinary Share.

SHAREHOLDERS' EQUITY (Schedul_3

SHAREHOLDERS' EQUITY (Schedule of Assumptions Used to Calculate Fair Value of Options Granted) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employees, officers and directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%
Expected volatility		51.20%
Risk-free interest rate		2.96%
Contractual term	7 years	7 years	7 years
Employees, officers and directors [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of one ordinary share	$ 7.49	$ 4.86	$ 0.48
Expected volatility	46.03%		39.00%
Risk-free interest rate	1.62%		0.82%
Early exercise multiple	150.00%	150.00%	150.00%
Employees, officers and directors [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of one ordinary share	$ 41.55	$ 6.32	$ 3.12
Expected volatility	51.91%		50.00%
Risk-free interest rate	2.60%		2.26%
Early exercise multiple	250.00%	250.00%	250.00%
Service providers and consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of one ordinary share		$ 6.32
Dividend yield	0.00%	0.00%	0.00%
Expected volatility		51.20%
Risk-free interest rate		2.96%
Early exercise multiple	0.00%	0.00%	0.00%
Contractual term	7 years	7 years	7 years
Service providers and consultants [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of one ordinary share	$ 7.49		$ 0.45
Expected volatility	46.03%		39.00%
Risk-free interest rate	1.71%		0.82%
Service providers and consultants [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of one ordinary share	$ 41.55		$ 4.11
Expected volatility	51.91%		50.00%
Risk-free interest rate	2.60%		2.26%

SHAREHOLDERS' EQUITY (Schedul_4

SHAREHOLDERS' EQUITY (Schedule Of Outstanding and Execisable Options) (Details)	12 Months Ended
	Dec. 31, 2019$ / sharesshares
$0.20 [Member]
Exercise prices | $ / shares	$ 0.20	[1]
Number of options outstanding at end of year	613,628
Weighted average remaining contractual life of outstanding options	1 year
Number of options exercisable at end of year	613,628
Weighted average remaining contractual life of eercisable options	1 year
$0.44 [Member]
Exercise prices | $ / shares	$ 0.44	[1]
Number of options outstanding at end of year	55,459
Weighted average remaining contractual life of outstanding options	2 years 6 months 7 days
Number of options exercisable at end of year	55,459
Weighted average remaining contractual life of eercisable options	2 years 6 months 7 days
$0.56 [Member]
Exercise prices | $ / shares	$ 0.56	[1]
Number of options outstanding at end of year	7,597,220
Weighted average remaining contractual life of outstanding options	3 years 4 months 6 days
Number of options exercisable at end of year	7,597,220
Weighted average remaining contractual life of eercisable options	3 years 4 months 6 days
$6.32 [Member]
Exercise prices | $ / shares	$ 6.32	[1]
Number of options outstanding at end of year	318,710
Weighted average remaining contractual life of outstanding options	5 years 8 months 19 days
Number of options exercisable at end of year	272,870
Weighted average remaining contractual life of eercisable options	5 years 8 months 19 days
$7.49 [Member]
Exercise prices | $ / shares	$ 7.49	[1]
Number of options outstanding at end of year	441,883
Weighted average remaining contractual life of outstanding options	6 years 7 days
Number of options exercisable at end of year	346,839
Weighted average remaining contractual life of eercisable options	6 years 7 days
$10.23 [Member]
Exercise prices | $ / shares	$ 10.23	[1]
Number of options outstanding at end of year	112,708
Weighted average remaining contractual life of outstanding options	6 years 3 months 4 days
Number of options exercisable at end of year	38,760
Weighted average remaining contractual life of eercisable options	6 years 3 months 4 days
$14.00 [Member]
Exercise prices | $ / shares	$ 14	[1]
Number of options outstanding at end of year	30,000
Weighted average remaining contractual life of outstanding options	6 years 7 months 13 days
Number of options exercisable at end of year	7,500
Weighted average remaining contractual life of eercisable options	6 years 7 months 13 days
$41.55 [Member]
Exercise prices | $ / shares	$ 41.55	[1]
Number of options outstanding at end of year	131,250
Weighted average remaining contractual life of outstanding options	6 years 10 months 28 days
Number of options exercisable at end of year
[1]	In U.S. dollars per Ordinary Share.

SHAREHOLDERS' EQUITY (Schedul_5

SHAREHOLDERS' EQUITY (Schedule Of Share Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation income	$ 1,557	$ 1,947	$ 2,436
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation income	94	25	36
Research and Development Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation income	179	63	21
Selling and Marketing Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation income	1,158	1,817	2,277
General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation income	$ 126	$ 42	$ 102

SHAREHOLDERS' EQUITY (Schedul_6

SHAREHOLDERS' EQUITY (Schedule Of Changes In Redeemable Non Controlling Interest) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
Balance as of January 1	$ 2,187	$ 3,066	$ 183
Adjustment to redemption value of redeemable non-controlling interest	130	535	1,154
Increases due to additional investment of redeemable non-controlling interest			1,729
Waiver of redeemable non-controlling interest	(2,317)	(1,414)
Balance as of December 31		$ 2,187	$ 3,066

TAXES ON INCOME (Narrative) (De

TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2009
Income Tax Contingency [Line Items]
Tax benefit year										10 years
Corporate tax	25.00%	16.00%	7.50%	16.00%	16.00%	16.00%	9.00%	12.50%	7.00%
Tax rate after divdend	15.00%
Statutory rate	23.00%	23.00%	24.00%
Deferred tax assets	$ 1,899	$ 1,309	$ 406
Minimum [Member]
Income Tax Contingency [Line Items]
Corporate tax		35.00%
Maximum [Member]
Income Tax Contingency [Line Items]
Corporate tax		21.00%
Special Preferred Enterprise [Member]
Income Tax Contingency [Line Items]
Corporate tax	8.00%
Tax rate after divdend	20.00%
Development Zone A [Member]
Income Tax Contingency [Line Items]
Corporate tax			7.50%						10.00%
Development Zone A [Member] | Special Preferred Enterprise [Member]
Income Tax Contingency [Line Items]
Corporate tax			6.00%
Tax rate after divdend			4.00%
Elsewhere [Member]
Income Tax Contingency [Line Items]
Corporate tax			12.00%						15.00%

TAXES ON INCOME (Schedule of De

TAXES ON INCOME (Schedule of Deferred Tax Assets (liabilities)) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets in respect of:
Carryforward losses on Marketable securities	$ 200
Subsidiary net operating loss	362	291
Other temporary differences	431	353
Share-based compensation	1,268	956
Total deferred tax asset before valuation allowance	2,261	1,600
Valuation allowance	(362)	(291)
Total deferred tax asset	1,899	1,309	$ 406
Deferred tax lability in respect to other comprehensive income	(37)	(11)
Total deferred tax liability	(37)	(11)
Deferred tax asset, net	$ 1,862	$ 1,298

TAXES ON INCOME (Schedule of Re

TAXES ON INCOME (Schedule of Reconciliation of Theoretical Provision For Income Tax) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income before taxes on income	$ 62,041	$ 23,625	$ 9,799
Theoretical tax expenses at the statutory rate of InMode	23.00%	23.00%	24.00%
Theoretical tax benefit	$ 14,270	$ 5,434	$ 2,352
Increase (decrease) in taxes on income due to:
Benefits to the Benefited Enterprise	(13,844)	(5,162)	(2,256)
Different effective tax rates applicable to the subsidiaries	49	53	87
Changes in tax rate in the United States			406
Valuation allowance	60	91	119
Uncertain tax position	723	771
Non-deductible expenses and other permanent differences, mainly share based compensation expenses	(437)	73	247
Previous year	62		25
Total taxes on income	$ 883	$ 1,260	$ 980

TAXES ON INCOME (Summary of ope

TAXES ON INCOME (Summary of open tax years) (Details)	12 Months Ended
	Dec. 31, 2019
Israel [Member] | Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2014
Israel [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2019
The United States [Member] | Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2016
The United States [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2019
Japan [Member] | Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2015
Japan [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2019
United Kingdom [Member] | Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2015
United Kingdom [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2019
Canada [Member] | Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2015
Canada [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2019
China [Member] | Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2016
China [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2019
Spain [Member] | Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2018
Spain [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2019
India [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2019
Australian [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2019

TAXES ON INCOME (Schedule of In

TAXES ON INCOME (Schedule of Income Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Income before taxes on income	$ 62,041	$ 23,625	$ 9,799
InMode Ltd. [member]
Operating Loss Carryforwards [Line Items]
Income before taxes on income	59,320	22,049	9,400
Subsidiaries outside Israel [Member]
Operating Loss Carryforwards [Line Items]
Income before taxes on income	$ 2,721	$ 1,576	$ 399

TAXES ON INCOME (Schedule of Ta

TAXES ON INCOME (Schedule of Tax Expenses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Current	$ 1,410	$ 1,853	$ 1,535
Previous year	62		25
Deferred	(589)	(593)	(580)
Total taxes on income	883	1,260	980
Israel [Member]
Operating Loss Carryforwards [Line Items]
Current	500	3
Previous year	62		25
Deferred	(200)	(94)
Subsidiaries outside Israel [Member]
Operating Loss Carryforwards [Line Items]
Current	910	1,850	1,535
Deferred	$ (389)	$ (499)	$ (580)

TAXES ON INCOME (Schedule of Un

TAXES ON INCOME (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Balance at January 1	$ 771
Increase in uncertain tax positions for the current year	723	771
Balance at December 31	$ 1,494	$ 771

ENTITY-WIDE DISCLOSURE (Narrati

ENTITY-WIDE DISCLOSURE (Narrative) (Details)	Dec. 31, 2022	Dec. 31, 2021
Subsequent Event [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Percentage of non- current deferred revenue	81.00%	81.00%

ENTITY-WIDE DISCLOSURE (Schedul

ENTITY-WIDE DISCLOSURE (Schedule Of Net Sales By Geographical Area) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting, Revenue Reconciling Item [Line Items]
Total sales	$ 156,361	$ 100,162	$ 53,456
United States [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Total sales	124,199	81,063	42,642
Other [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Total sales	$ 32,162	$ 19,099	$ 10,814

ENTITY-WIDE DISCLOSURE (Sched_2

ENTITY-WIDE DISCLOSURE (Schedule Of Changes In Contract Liabilities) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Segment Reporting [Abstract]
Balance as of January 1		$ 9,737	$ 4,496
Increases due to issuance of new contracts, excluding amounts recognized as revenue during the period		15,428	6,302
Revenue recognized that was included in the contract liability balance at the beginning of the period		(5,765)	(1,061)
Balance as of December 31		19,400	9,737
Contract liability presented in non-current liabilities	[1]	3,813	3,982
Contract liability presented in current liabilities		$ 15,587	$ 5,755
[1]	As of December 31, 2019, non- current deferred revenue is estimated to be recognized as following: 81% in year 2021, and the rest in year 2022.

ENTITY-WIDE DISCLOSURE (Sched_3

ENTITY-WIDE DISCLOSURE (Schedule Of Long-Lived Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Total sales	$ 935	$ 544
Israel [Member]
Segment Reporting Information [Line Items]
Total sales	820	450
United States [Member]
Segment Reporting Information [Line Items]
Total sales	102	82
Other [Member]
Segment Reporting Information [Line Items]
Total sales	$ 13	$ 12

RELATED PARTIES (Details)

RELATED PARTIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Home Skinnovations Ltd [Member]
Related Party Transaction [Line Items]
Payment for services received	$ 247	$ 82	$ 240
Subsidiary of Home Skinnovations Ltd [Member]
Related Party Transaction [Line Items]
Payment for services received	341	140	$ 128
Shareholders and Related Party [Member]
Related Party Transaction [Line Items]
Payment for services received	$ 710	$ 518

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - Officers, employees and consultants [member]	1 Months Ended
	Jan. 31, 2020shares
Subsequent Event [Line Items]
Option Granted Shares	1,011,500
Option vesting period	3 years