InMode (INMD) 20-F 10 Feb 21 2020 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2020shares
Entity Central Index Key	0001742692
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Document Type	20-F
Amendment Flag	false
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2020
Entity File Number	001-39016
Entity Registrant Name	InMode Ltd.
Entity Incorporation, State or Country Code	IL
Entity Address, Address Line One	Tavor Building
Entity Address, Address Line Two	Sha’ar Yokneam
Entity Address, Address Line Three	P.O. Box 533
Entity Address, City or Town	Yokneam
Entity Address Country	IL
Entity Address, Postal Zip Code	2069206
Title of 12(b) Security	Ordinary shares, par value NIS 0.01 per ordinary share
Trading Symbol	INMD
Name of Exchange on which Security is Registered	NASDAQ
Entity Common Stock, Shares Outstanding	37,783,777	[1]
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Auditor Attestation Flag	false
Business Contact [Member]
Contact Personnel Name	Moshe Mizrahy
Entity Address, Address Line One	Tavor Building
Entity Address, Address Line Two	Sha’ar Yokneam
Entity Address, Address Line Three	P.O. Box 533
Entity Address, City or Town	Yokneam
Entity Address Country	IL
Entity Address, Postal Zip Code	2069206
City Area Code	972
Local Phone Number	4-9096313
[1]	The above number of Ordinary Shares outstanding does not include a total of 393,441 Ordinary Shares held at December 31, 2020, as treasury shares, all of which were repurchased by InMode Ltd.

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Dec. 31, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents		$ 68,938	$ 44,727
Marketable securities (amortized cost of $141,544 and $119,983, respectively)		142,007	120,144
Short-term bank deposits		49,589	28,491
Accounts receivable, net of allowance for doubtful accounts of $672 and $432, repsectively		10,499	6,628
Other receivables		3,575	3,810
Inventories		14,983	9,408
T O T A L CURRENT ASSETS		289,591	213,208
NON-CURRENT ASSETS:
Accounts receivable		477	374
Other receivables		2,894
Deferred income taxes, net		64	1,899
Operating lease right-of-use assets		1,153	1,369
Property and equipment, net		982	935
Other Investments		600	600
T O T A L NON-CURRENT ASSETS		6,170	5,177
T O T A L ASSETS		295,761	218,385
CURRENT LIABILITIES:
Accounts payable		6,410	3,702
Contract liabilities		11,900	15,587
Other liabilities		16,720	13,205
T O T A L CURRENT LIABILITIES		35,030	32,494
NON-CURRENT LIABILITIES:
Contract liabilities	[1]	1,988	3,813
Other liabilities		2,910	1,494
Operating lease liabilities		358	744
Deferred income taxes, net			37
T O T A L NON-CURRENT LIABILITIES		5,256	6,088
T O T A L LIABILITIES		40,286	38,582
COMMITMENTS AND CONTINGENCIES (note 11)
InMode Ltd. shareholders' equity:
Ordinary shares, NIS 0.01 par value, authorized 100,000,000 shares at December 31, 2020 and 2019 Issued 38,177,218 and 32,799,082 shares at December 31, 2020 and 2019, respectively Outstanding 37,783,777 and 32,799,082 shares at December 31, 2020 and 2019, respectively		108	93
Additional paid-in capital		101,701	81,863
Retained earnings		169,016	93,986
Accumulated other comprehensive income		356	124
Less treasury shares, at cost at December 31, 2020: 393,441 Ordinary Shares		(17,218)
InMode Ltd. shareholders' equity		253,963	176,066
Non-controlling interests		1,512	3,737
T O T A L SHAREHOLDERS' EQUITY		255,475	179,803
T O T A L LIABILITIES AND SHAREHOLDERS' EQUITY		$ 295,761	$ 218,385
[1]	As of December 31, 2020, noncurrent deferred revenue is estimated to be recognized as following: 83% in year 2022 and the rest in year 2023-2024.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Dec. 31, 2020USD ($)shares	Dec. 31, 2019USD ($)shares
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts | $	$ 672	$ 432
Marketable securities, amortization | $	$ 141,544	$ 119,983
Ordinary shares, shares authorized	100,000,000	100,000,000
Ordinary shares, issued shares	38,177,218	32,799,082
Ordinary shares, outstanding shares	37,783,777	32,799,082
Treasury shares, ordinary shares	393,441

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
REVENUES	$ 206,107	$ 156,361	$ 100,162
COST OF REVENUES	30,849	20,238	15,057
GROSS PROFIT	175,258	136,123	85,105
OPERATING EXPENSES:
Research and development	9,467	5,699	4,180
Sales and marketing	86,532	66,848	44,622
General and administrative	6,418	3,958	4,814
Legal settlements and loss contingencies			8,000
TOTAL OPERATING EXPENSES	102,417	76,505	61,616
INCOME FROM OPERATIONS	72,841	59,618	23,489
Finance income, net	3,291	2,423	136
INCOME BEFORE TAXES	76,132	62,041	23,625
INCOME TAXES	1,107	883	1,260
NET INCOME	75,025	61,158	22,365
Add: Loss (net income) attributable to non-controlling interests	5	(13)	6
NET INCOME ATTRIBUTABLE TO INMODE LTD	$ 75,030	$ 61,145	$ 22,371
NET INCOME PER SHARE:
Basic	$ 2.08	$ 2.09	$ 0.82
Diluted	$ 1.78	$ 1.60	$ 0.62
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE
Basic	36,057,182	29,231,476	26,613,942
Diluted	42,092,299	38,058,625	35,006,644

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 75,025	$ 61,158	$ 22,365
OTHER COMPREHENSIVE INCOME:
Change in foreign currency translation adjustment		(34)	(153)
Change in net unrealized gains of marketable securities, net of tax	232	86	(1)
T O T A L COMPREHENSIVE INCOME, net	75,257	61,210	22,211
Add: Comprehensive loss (income) attributable to non-controlling interests	5	(7)	1
T O T A L COMPREHENSIVE INCOME ATTRIBUTABLE TO INMODE LTD	$ 75,262	$ 61,203	$ 22,212

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]	Treasury Stock [Member]	Noncontrolling Interest [Member]	Total
Begining Balance at Dec. 31, 2017	$ 74		$ 8,019	$ 11,135	$ 225			$ 19,453
Begining Balance, Shares at Dec. 31, 2017	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 12b)							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 12b)							2,317	2,317
Initial public offering of ordinary shares, net of offering costs	$ 16		69,768					69,784
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
Net income				75,030			(5)	75,025
Other comprehensive income, net					232			232
Share-based compensation			12,845					12,845
Acquisition of non-controlling interest in exchange of ordinary shares (see note 12b)			2,220				(2,220)
Repurchase of ordinary shares						$ (17,218)		(17,218)
Repurchase of ordinary shares, shares	(393,441)
Exercise of options	$ 15		4,773					4,788
Exercise of options, shares	5,378,136
Ending Balance at Dec. 31, 2020	$ 108		$ 101,701	$ 169,016	$ 356	$ (17,218)	$ 1,512	$ 255,475
Ending Balance, shares at Dec. 31, 2020	37,783,777
[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, 2020	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 75,025	$ 61,158	$ 22,365
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	416	302	184
Share-based compensation expenses	12,845	1,557	1,947
Change in allowance for doubtful accounts	442	78	(33)
Loss (gains) on marketable securities, net	5	3	(21)
Changes in fair value of marketable securities, net			291
Finance income, net	(625)	(835)	(45)
Deferred income taxes, net	1,729	(594)	(592)
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	(4,416)	449	(571)
Increase in other receivables	(2,647)	(1,316)	(1,171)
Increase in inventories	(5,575)	(2,445)	(1,891)
Increase in accounts payable	2,708	92	541
Increase in other liabilities	4,830	4,094	2,631
Increase (decrease) in contract liabilities	(5,512)	9,663	5,251
Increase (decrease) in accrued contingencies		(10,000)	8,000
Net cash provided by operating activities	79,225	62,206	36,886
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short-term deposit	(55,699)	(47,810)	(10,000)
Proceeds from short-term deposit	34,810	29,500
Purchase of fixed assets	(463)	(693)	(381)
Other Investments		(600)
Purchase of marketable securities	(169,689)	(165,423)	(38,346)
Proceeds from sale of marketable securities	147,736	72,574	18,988
Net cash used in investing activities	(43,305)	(112,452)	(29,739)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from initial public offering of ordinary shares, net of offering costs		69,784
Repurchase of ordinary shares	(17,218)
Exercise of options	4,776	389	186
Net cash provided by (used in) financing activities	(12,442)	70,173	186
EFFECT OF EXCHANGE RATE CHANGES ON CASH	733	79	(205)
NET INCREASE IN CASH AND CASH EQUIVALENTS	24,211	20,006	7,128
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR	44,727	24,721	17,593
CASH AND CASH EQUIVALENTS AT END OF THE YEAR	68,938	44,727	24,721
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:
Income taxes paid	217	1,415	1,800
Interest received	2,771	1,525	662
NON-CASH ACTIVITIES
Deferred offering costs in accounts payable			895
Recognition of operating lease ROU and liabilities	566	417
Exercise of Options	$ 12

GENERAL

GENERAL	12 Months Ended
	Dec. 31, 2020
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. The Company also designs, develops, manufactures and markets hands-free medical aesthetic products that target a wide array of procedures such as skin tightening, fat reduction and muscle stimulation. In August 2019, the Company completed an initial public offering (the “IPO“) on the Nasdaq Global Select Market (the "Nasdaq"), in which it issued 5,500,000 ordinary shares, NIS 0.01 par value per share, at a price per share of $14. The net proceeds received from the IPO were approximately $69,784, after deducting underwriting commissions and other offering expenses. See also note 12a. The Company has ten wholly-owned subsidiaries located in the United States and Canada (“North America”), Hong-Kong, Japan, Spain, Israel, India, Australia, China and France. The wholly owned subsidiary in France was established in June 2020. In addition, the Company holds 51% interests in a subsidiary located in the United Kingdom. The Company’s eleven subsidiaries are referred to collectively herein as the “Subsidiaries.” The Company sells its products primarily through its Subsidiaries. See note 12b for an update regarding change in ownership of the China subsidiary.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2020
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. F - 10 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES c. Functional currency The U.S. dollar (“U.S. dollar” or “$“) is the currency of the primary economic environment in which the operations of the Company is conducted. Substantial revenues and a substantial portion of the operational costs are denominated in U.S. dollars. 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 balance sheet. 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. Gains or losses on disposals of shares to non-controlling interests were 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 0.35%-2.90% in 2019 and 0.15%-2.35% in 2020. F - 11 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES g. Marketable securities AFS 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 (together “AFS securities”). Changes in fair value, excluding credit losses and impairments, 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. Fair value is calculated based on publicly available market information. If the amortized cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. To determine credit losses, the Company evaluates, among other, available quantitative and qualitative evidence. In addition, the Company considers specific adverse conditions related to the financial health of, and business outlook for, the investee. The decline in fair value below cost is recorded as an impairment charge in finance income or expense, net. 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. Equity Securities The Company applies 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. Changes in fair value of marketable equity securities and mutual funds, are reflected in the consolidated statements of income as finance income or expense. 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 8). F - 12 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES 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. 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. 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 9). Upon adoption, 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 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. F - 13 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES 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, 2020, 2019 and 2018, 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 11b). F - 14 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES 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 13a(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 13a. 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). F - 15 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES o. Share-based compensation The Company grants share options to its employees, directors and non-employees in consideration for services rendered. See note 12(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. 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. Performance-based option expenses are calculated based on the options valuation at the grant date, and recognized based on the probability of achieving those targets. The Company assess at what scale can the performance targets be reached at each balance sheet date, and expenses are recognized accordingly. 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. 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 actual sales transactions of service contract purchased on a standalone basis and uses the residual approach to estimate the selling price of the products; and F - 16 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (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 a down payment and payments made within several month 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 includes price concessions related to installment sales contracts and other price concessions related to COVID-19 (see also note 3). The Company estimates variable consideration using the most likely method. Amounts included in the transaction price are recognized only when it is probable that a significant reversal of cumulative revenues will not occur. 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. F - 17 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES 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 and financial instruments - credit loss 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. Starting from January 1, 2020, the Company applies ASU 2016-13 “Financial Instruments Credit Losses Measurement of Credit Losses on Financial Instruments” (“the Standard”). The Company uses the Standard as part of the allowance for doubtful accounts estimated losses which takes into account a broader range of reasonable and supportable information to inform credit loss estimates. This information includes among other the historic experience, the extent and amount of the account and geographical characteristics of the account. The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. 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, 2020, 2019 and 2018, respectively: 2020 2019 2018 Balance at beginning of year 472 706 380 Cost incurred (1,127 ) (756 ) (1,009 ) Expense recognized 1,360 522 1,335 Balance at end of year 705 472 706 F - 18 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES 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 deducted 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. F - 19 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES w. Segments The Company operates in one segment. Management 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. Entity-wide disclosures on revenue and long-lived assets are presented in note 14. 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 $329, $242 and $174 and for the years ended December 31, 2020, 2019 and 2018, respectively. The Company expects to contribute approximately $337 in the year ending December 31, 2021 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. Treasury Shares Treasury shares are presented as a reduction of equity, at their cost to the Company. F - 20 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES aa. Newly issued and recently adopted accounting pronouncements Recently adopted accounting pronouncements: 1) In June 2016, the FASB issued ASU 2016-13 “Financial Instruments Credit Losses Measurement of Credit Losses Recently issued Accounting Pronouncements, not yet adopted 2) In December 2019, the FASB issued a new standard to simplify the accounting for income taxes. The guidance

COVID-19

COVID-19	12 Months Ended
	Dec. 31, 2020
COVID-19 [Abstract]
COVID-19	NOTE 3 - COVID-19: In March 2020, the World Health Organization declared the outbreak of COVID-19 to be a pandemic. The COVID-19 pandemic is having widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets, and business practices. Governments around the world have implemented measures in an effort to contain the virus, including social distancing, travel restrictions, border closures, limitations on public gatherings, work from home, supply chain logistical changes and closure of non-essential businesses. To protect the health and well-being of the Company’s employees, suppliers, and customers, the Company have made substantial modifications to employee travel policies, implemented office closures as employees are advised to work from home only when shutdowns were declared, and cancelled or shifted the Company’s conferences and other marketing events to virtual-only through 2020. Though the Company sees great progress to overcome the COVID-19 pandemic, with distribution of vaccines, still the COVID-19 may continue to impact the Company’s business operations, including its employees, customers, partners, and communities, and there is uncertainty in the nature and degree of its continued effects over time. The uncertainty to which the COVID-19 pandemic impacts the Company’s business, affects management’s judgment and assumptions relating to accounting estimates in a variety of areas that depend on these estimates and assumptions, including variable consideration related to price concessions resulted an immaterial influence at the end of the year. COVID-19 also resulted in re-pricing of the Company’s existing share-based compensations (see also note 12a). The extent to which the COVID-19 pandemic will impact the Company’s business going forward will depend on numerous evolving factors that cannot be reliably predicted, including the duration and scope of the pandemic; governmental, business, and individuals' actions in response to the pandemic; and the impact on economic activity including the possibility of recession or financial market instability.

MARKETABLE SECURITIES AND FAIR

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2020
Marketable Securities and Fair Value Measurement [Abstract]
MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS	NOTE 4 - MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS: AFS securities as of December 31, 2020 and 2019, consisted of government bonds, corporate debt securities and certificates of deposit. These marketable securities are recorded at fair value. The following table sets forth the Company’s marketable securities for the periods indicated: December 31 2020 2019 Government bonds * 124,821 104,349 Corporate debt securities 15,118 14,023 Certificates of deposit 2,068 1,772 Total 142,007 120,144 * As of December 31, 2020 and 2019, consists of $2,555 and $2,104 non-U.S. government bonds, respectively. The Company classifies AFS 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, 2020 and 2019, that are measured at fair value on a recurring basis during the period: December 31, 2020 Fair value Cost or amortized cost Gross unrealized holding loss Gross unrealized holding gains Level 2 securities: Government bonds 124,821 124,462 (12) 371 Corporate debt securities 15,118 15,040 (16) 94 Certificates of deposit 2,068 2,042 - 26 Total 142,007 141,544 (28 ) 491 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 Corporate debt securities 14,023 13,985 (15 ) 53 Certificates of deposit 1,772 1,768 - 4 Total 120,144 119,983 (53 ) 214 As of December 31, 2020 and 2019, the Company considered, based on its evaluation, that the decreases in market value on relevant marketable securities were temporarily impaired and therefore did not result in an impairment charge in finance income or expense, net. As of December 31, 2020 and 2019, the Company’s debt securities had the following maturity dates: December 31 2020 2019 Due within one year 21,662 32,642 1 to 2 years 91,401 41,784 2 to 3 years 28,944 45,718 Total 142,007 120,144

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
ACCOUNTS RECEIVABLE	NOTE 5 - ACCOUNTS RECEIVABLE: Accounts receivable consist of the following: December 31 2020 2019 Trade 9,396 6,186 Notes receivable 2,252 1,248 Less - allowance for doubtful debt (672 ) (432 ) 10,976 7,002 Less - non-current accounts receivable (477 ) (374 ) Total accounts receivable 10,499 6,628

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 6 - INVENTORIES: Inventories consist of the following: December 31 2020 2019 Raw materials 3,642 2,725 Finished products 11,341 6,683 Total inventories 14,983 9,408

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	NOTE 7 - PROPERTY AND EQUIPMENT, NET: Composition of property and equipment grouped by major classifications is as follows: December 31 2020 2019 Computers 658 392 Office furniture and equipment 151 132 Molds 1,527 1,398 Leasehold improvements 283 234 2,619 2,156 Less: accumulated depreciation (1,637 ) (1,221 ) Total property and equipment, net 982 935 Total depreciation and amortization in respect of property and equipment were $416, $302 and $184 for the years ended December 31, 2020, 2019 and 2018 respectively.

OTHER INVESTMENTS

OTHER INVESTMENTS	12 Months Ended
	Dec. 31, 2020
Investments [Abstract]
OTHER INVESTMENTS	NOTE 8 - 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 414,384 ordinary shares, in the amount of $181.5 (the “Initial Shares Investment Amount”), were issued upon consummation of the initial closing on December 31, 2019, and additional 955,479 ordinary shares (the “Milestone Shares”) in the amount of $418.5 (the “Milestone Shares Investment Amount”) were to be issued upon, and subject to the occurrence of, any of the milestone events (each, a “Milestone Event”) as stated in the SPA. In July 2020 the Milestone Event has been met and, accordingly, the Milestone Shares were issued to the Company. As of December 31, 2020, the Company has paid Medimor the full Investment Amount and was issued with 1,369,863 ordinary shares of Medimor, which reflects a 14.78%ownership interest in Medimor, and 10.34% ownership interest in Medimor on a fully diluted basis, upon the last of such issuances. The Initial Shares Investment Amount is measured at cost, less impairment and adjusted for subsequent observable price changes, and starting from July 2020, the Milestone Shares Investment Amount is measured in the same way.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2020
Leases [Abstract]
LEASES	NOTE 9 - LEASES: The Company’s main leasing properties are located in Israel, USA and Canada as detailed below: a. In May 2018, the Company signed a lease agreement for its headquarters in Israel. On January 13, 2019, the The costs under the Lease Agreement in Israel are 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 339 thousand (approximately $105). The Company also leases vehicles for several employees in Israel for a period of three years. b. The Company’s U.S. subsidiary has a lease agreement for its offices that expires in c. The Company’s Canadian subsidiary has a lease agreement for its offices that expires in From time to time the Company also leases small properties, mainly for offices for subsidiaries around the world which range for periods of up to 3 years. In February 2020, one of the Company’s subsidiaries signed a new lease agreement for its offices that expires in January 2023. F - 24 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 9 - LEASES The lease cost was as follows: Year ended December 31 2020 2019 Operating lease cost 930 766 Supplemental cash flow information related to leases was as follows: Year ended December 31 2020 2019 Operating cash flows from operating leases 963 786 Supplemental balance sheet information related to leases was as follows: December 31, 2020 2019 Operating Leases Operating lease right-of-use assets 1,153 1,369 Other current liabilities 880 672 Operating lease liabilities 358 744 Total operating lease liabilities 1,238 1,416 Weighted Average Remaining Lease Term Operating leases 1.33 years 2.08 years Weighted Average Discount Rate Operating leases 2.75% 2.75% As of December 31, 2020, the maturities of lease liabilities were as follows: Operating Leases Year Ending December 31, 2021 896 2022 316 2023 58 Total lease payments 1,270 Less imputed interests (32 ) Total 1,238

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	12 Months Ended
	Dec. 31, 2020
Payables and Accruals [Abstract]
OTHER CURRENT LIABILITIES	NOTE 10 - OTHER CURRENT LIABILITIES: Other current liabilities consist of the following: December 31 2020 2019 Employees and related expenses 10,022 8,164 Government institutions 1,224 1,539 Income tax 758 202 Other 4,716 3,300 Total other current liabilities 16,720 13,205

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 11 - COMMITMENTS AND CONTINGENT LIABILITIES: a. Subcontracting agreements The Company has an existing turnkey manufacturing agreement with one of its major subcontractors 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 have the ability to terminate the contract at any time and for any reason with a prior written notice of four months. In October 2019, the Company entered into a turnkey manufacturing agreement with another of its major subcontractors provider in Israel, Medimor Ltd. The agreement is for three years and renewed automatically every year afterwards, unless either the Company or the turnkey manufacturer gives written notice three months prior to the expiration of the term. See also note 8. According to the agreements above, the Company does not have a minimum order obligation, but the Company provides the subcontractors a six-month rolling forecast with the projected demand for products. In case of termination of the agreement with each subcontractor, the Company has to compensate that subcontractor for non-returnable inventory, materials in orders that cannot be cancelled and finished products inventory. As of December 31, 2020, the subcontractors’ finished goods inventory, raw material and open orders amounted to approximately $9,585. 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, 2020
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	NOTE 12 - 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 resolved 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 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 of approximately $7,216 in aggregate. In September 2020, the Company approved a share repurchase program of up to 1 million ordinary shares, to be purchased out of the Company's cash reserve and to be paid solely from the Company's IPO proceeds. During the fourth quarter of 2020, the Company purchased 393,441 shares in the amount of $17,218. 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 b) 2008 ROW Option Plan (“2008 ROW Plan”) allowing the Company to grant options to purchase ordinary shares F - 27 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 12 - SHAREHOLDERS' EQUITY 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 and its Subsidiaries. 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 and its Subsidiaries. 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 could have been issued pursuant to awards under the 2018 Incentive Plan. In addition, upon adoption of the 2018 Incentive Plan, the Board and the shareholders resolved to approve an evergreen mechanism with respect to the 2018 Incentive Plan, 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, by such number of options 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 (total amount of 2,589,000 ordinary shares). In January 2021, 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 (total amount of 3,389,000 ordinary shares). As of December 31, 2020, 193,547 options were available for grant under the 2018 Incentive Plan. F - 28 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 12 - SHAREHOLDERS' EQUITY Details Regarding Grant of Options: Year Ended December 31, 2020 Award amount Exercise price range Vesting period Expiration Employees, officers, directors, service providers and consultants: January 7, 2020 16,000* $35.04 1 Year 7 Years February 17, 2020 209,500* $19.69** 0-3 Years 7 Years March 15, 2020 1,286,150* $19.69** 0-3 Years 7 Years May 5, 2020 75,500 $24.32 0-3 Years 7 Years November 11, 2020 6,500*** $43.23 0-1 Year 7 Years Year Ended December 31, 2019 Award amount Exercise price Vesting period Expiration Employees, officers, directors, service providers and consultants: January 6, 2019 169,956 $7.49 0-3 Years 7 Years January 7, 2019 305,919 $7.49 0-3 Years 7 Years April 1, 2019 30,413 $10.23 0-2 Years 7 Years April 5, 2019 67,982 $10.23 0-3 Years 7 Years April 6, 2019 14,313 $10.23 0-3 Years 7 Years August 8, 2019 30,000 $14.00 0-2 Years 7 Years November 25, 2019 20,500* $19.69** 1 Year 7 Years * Net of options granted in March 2020 ** Modification of share-based compensation On March 15, 2020, the Company’s board of directors approved: (i) the re-pricing of such outstanding options under Section 102 to the Israeli Tax Ordinance that were granted during November 2019 and February 2020, to a lower exercise price of $19.69 (as further approved by a respective tax-ruling received from the Israeli Tax Authorities), and (ii) the cancellation of all other outstanding options granted to Non-Israeli grantees in November 2019, January 2020 and February 2020, and the grant of replacement options thereof under the same terms as originally granted but with a lower exercise price of US $19.69. The cancellation and grant of replacement options thereof with respect to such options granted to executive officers of the Company was ratified and approved by the Company's shareholders on June 16, 2020. As a result, for 224,500 outstanding options (of which 15,000 options granted on November 25, 2019 at an exercise price of $41.55 and the rest granted on February 17, 2020, at an exercise price of $43.96) that were granted to Israeli grantees under Section 102 to the Israeli Tax Ordinance the exercise price was re-priced and reduced to $19.69, and 1,259,150 options (of which 112,250 options granted on November 25, 2019 at an exercise price of $41.55, 953,000 options granted on January 7, 2020 at an exercise price of $35.04, 42,500 options granted on January 28, 2020 at an exercise price of $43.9 and the rest granted on February 17, 2020 at an exercise price of $43.96) were cancelled and 1,259,150 options were granted (under the same terms as originally granted but with a lower exercise price of $19.69) simultaneously to non-Israeli grantees. F - 29 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 12 - SHAREHOLDERS' EQUITY The reduction of the exercise price of the options was considered a Type I modification. The total incremental fair value of these options amounted to $3,283. The incremental fair value of the options granted, that were fully vested on March 15, 2020, in the amount of $666 were recognized immediately, and the remaining incremental fair value will be recognized over the remaining vesting period and until December 31, 2022. *** GIBF Options Such options are subject to the consummation of the closing of the transaction contemplated under the share exchange agreement entered into by and between the Company and Guangzhou Sino-Israel Bio-Industry Investment Fund (LLP). See note 12(b)(i) below. The following tables summarize information concerning options as of December 31, 2020 and 2019, respectively: Year ended December 31 2020 2019 Number of Options Weighted Average Exercise price* Number of Options Weighted average exercise price* Outstanding at beginning of year 9,300,858 $ 1.80 9,392,215 $ 0.74 Changes during the year: Granted 1,593,650 ** 20.16 751,333 14.18 Cancelled (112,250 )** 41.55 - - Exercised (5,378,136 ) 0.88 (616,669 ) 0.63 Forfeited (138,300 ) 22.55 (35,492 ) 8.93 Expired (19,367 ) 0.56 (190,529 ) 0.56 Outstanding at end of year 5,246,455 $ 6.86 9,300,858 $ 1.80 Exercisable at end of year 4,092,184 $ 3.37 8,932,276 $ 1.03 * In U.S. dollars per Ordinary Share ** Net of options granted and cancelled in connection with modification as described above As of December 31, 2020, the weighted-average remaining contractual life of exercisable options was 3.52 years. The total intrinsic value of options exercised during 2020, 2019 and 2018 was approximately $190,498, $7,702 and $1,505, respectively. F - 30 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 12 - SHAREHOLDERS' EQUITY 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 2020 2019 2018 Fair value of one ordinary share $19.69-$43.96 $7.49-$41.55 $4.86-$6.32 Dividend yield 0% 0% 0% Expected volatility 46.07%-49.22% 46.03%-51.91% 51.2% Risk-free interest rate 0.53%-1.74% 1.62%-2.60% 2.96% Early exercise multiple (“EEM”) 0% - 250% 0% - 250% 0% - 250% Contractual term 6.7-7 years 7 years 7 years 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. At the time of the option grants in 2020, the Company’s ordinary shares have been publicly traded for only a short period of time, and therefore the early exercise multiple (“EEM”) was based on academic empirical findings and the expected volatility was based on the historical volatility of comparable companies. The total fair value of options granted during the years ended December 31, 2020, 2019 and 2018 was $16,345, $2,798 and $915, respectively. As of December 31, 2020, the Company had 1,154,271 unvested options. The total unrecognized compensation cost of employee options as of December 31, 2020 is $4,345, which is expected to be recognized over a weighted average period of 0.85 years. F - 31 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 12 - SHAREHOLDERS' EQUITY a) The following tables summarize information concerning outstanding and exercisable options as of December 31, December 31, 2020 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 $0.20 109,859 1.20 109,859 1.20 $0.44 42,936 2.00 42,936 2.00 $0.56 2,978,813 3.04 2,978,813 3.04 $6.32 145,169 4.71 145,169 4.71 $7.49 376,320 5.02 335,080 5.02 $10.23 111,708 5.26 84,101 5.26 $14.00 30,000 5.62 22,500 5.62 $19.69 1,390,150 6.19 347,350 6.19 $24.32 55,000 6.35 26,376 6.35 $43.23 6,500 6.87 - - * In U.S. dollars per Ordinary Share. The aggregate intrinsic value of total vested and exercisable options as of December 31, 2020 is $180,509. b) The following table illustrates the effect of share-based compensation on the statements of income: Year ended December 31 2020 2019 2018 Cost of sales 520 94 25 Research and development expenses 2,264 179 63 Selling and marketing expenses 9,398 1,158 1,817 General and administrative expenses 663 126 42 12,845 1,557 1,947 F - 32 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 12 - SHAREHOLDERS' EQUITY b. Non-Controlling Interests i. In December 2016, the Company signed a joint venture agreement with Guangzhou Sino-Israel Bio-Industry Additionally, GIBF, 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, GIBF, the non-controlling partner in the JVC signed an agreement in which it has 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. Upon 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 of Invasix UK 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. F - 33 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 12 - SHAREHOLDERS' EQUITY On November 11, 2020 (the “Signing Date”), the Company, GIBF and JVC entered into a share exchange agreement (the "Agreement") whereby, GIBF agreed to sell to the Company all of its outstanding share capital in the JVC (thereby making the JVC a wholly-owned subsidiary of the Company) and all of its rights pursuant to the equity joint venture agreement, dated January 11, 2017, by and between GIBF and the Company, in exchange for a purchase consideration of $2,700 (the "Purchase Consideration") which will be paid by the Company at the closing of such Agreement in January 2021, by way of issuance to GIBF by the Company, in a private placement, of 62,457 of the Company’s ordinary shares, par value NIS 0.01, which reflects the Purchase Consideration amount at the time of approval of the Agreement by the Company. For certain future services to be provided by GIBF to the JVC, the Company has approved the grant of 6,500 options to purchase ordinary shares of the Company, at an exercise price of US $43.23, subject to the closing of the transaction contemplated under the Agreement. The Agreement became effective at the Signing Date and thus was recognized in the consolidated statements of changes in shareholders’ equity. In January 2021, 62,457 of the Company’s ordinary shares were issued to GIBF from the Company’s treasury shares. ii. The changes in redeemable non-controlling interest are as follow: Year ended December 31 2019 2018 Balance as of January 1 2,187 3,066 Adjustment to redemption value of redeemable non-controlling interest 130 535 Increases due to additional investment of redeemable non-controlling interest - - Waiver of redeemable non-controlling interest (2,317 ) (1,414 ) Balance as of December 31 - 2,187

TAXES ON INCOME

TAXES ON INCOME	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
TAXES ON INCOME	NOTE 13 - TAXES ON INCOME: a. InMode Ltd. The Company is taxed according to Israeli tax laws: 1) Measurement of results for tax purposes Since 2008 until 2019, the Company has measured the results of InMode Ltd. (the "Israeli Company") for tax purposes in nominal terms in NIS. Starting from 2020, the Company’s results for tax purposes are measured in U.S dollars. 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. In 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, 2020, 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. 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. F - 35 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 13 - TAXES ON INCOME 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. F - 36 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 13 - TAXES ON INCOME 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 Regulations, the Company’s corporate tax rate is expected to be between 7.5% to 9%. 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, 2020, the Company’s management decided not to adopt the application of the amendment. F - 37 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 13 - TAXES ON INCOME 3) Corporate tax rate in Israel The Company is taxed in accordance with Israeli tax laws. The corporate tax rate is 23% for 2018 and thereafter. 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. In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in the US, which provides among others, tax relief measures for businesses including a five-year net operating loss (“NOL”) carry back. As a result, the Company recognized in its consolidated financial statements a receivable tax asset in the amount of $2,894, under non-current other receivables. As of December 31, 2020, the Company’s subsidiary in U.S has an accumulated tax loss carryforward of approximately $81.6 million derived mainly from exercises of options by employees which provided the Company tax deductions in excess of the actual compensation expenses (recognized in loss). Under the Tax Cuts and Jobs Act of 2017 (“TCJA”). Under U.S. tax laws, subject to certain limitations, carryforward tax losses originating in tax years beginning after January 1, 2018, have no expiration date, but they are limited to 80% of the company's taxable income in any given tax year. However, the 80% limitation is temporarily removed by the CARES Act, which reinstates the 80% limitation for tax years beginning after 2020. A full valuation allowance was created against the Company’s subsidiary in U.S deferred tax assets. Management currently believes that it is more likely than not that the deferred taxes generated in U,S will not be realized in the foreseeable future. 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, 2020 and 2019 were as follows: December 31 2020 2019 Deferred tax assets in respect of: Carryforward losses on Marketable securities - 200 Subsidiaries carryforward losses 22,857 362 Other temporary differences 2,369 431 Share-based compensation 2,943 1,268 Total deferred tax asset before valuation allowance 28,169 2,261 Valuation allowance (27,999 ) (362 ) Total deferred tax asset 170 1,899 Deferred tax lability in respect to other comprehensive income (106 ) (37 ) Total deferred tax liability (106 ) (37 ) Deferred tax asset, net 64 1,862 F - 38 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 13 - TAXES ON INCOME 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 temporary differences that will be reversed starting from 2022 and except for deferred taxes on realized losses and unrealized gain and losses from marketable securities); The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized in the foreseeable future. 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 2020 2019 2018 Income before taxes on income 76,132 62,041 23,625 Theoretical tax expenses at the statutory rate of InMode 23 % 23 % 23 % 17,510 14,270 5,434 Increase (decrease) in taxes on income due to: Benefits to the Benefited Enterprise (16,652 ) (13,844 ) (5,162 ) Different effective tax rates applicable to the Subsidiaries 235 49 53 NOL carry back as part of the CARES Act relief (2,894 ) - - Valuation allowance 17 60 91 Uncertain tax position 1,416 723 771 Non-deductible expenses and other permanent differences, mainly share based compensation expenses 1,426 (437 ) 73 Previous years 49 62 - 1,107 883 1,260 e. Tax assessments In accordance with the Israel Income Tax Ordinance, as of December 31, 2020, all tax assessments on the Company and the Company’s subsidiary in Israel through tax year 2014 are considered final. As of December 31, 2020, all tax assessments on the Company’s subsidiary in the United States, through tax year 2016, are considered final, in accordance with the tax law in its country of residence. The other Company’s subsidiaries open tax years, range form 2015-2020, in their relevant jurisdictions. F - 39 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 13 - TAXES ON INCOME f. Income before income taxes is composed of the following: Year ended December 31 2020 2019 2018 InMode Ltd. 72,712 59,320 22,049 Subsidiaries outside Israel 3,420 2,721 1,576 76,132 62,041 23,625 g. Tax expenses (tax benefit): Year ended December 31 2020 2019 2018 Current: Israel 1,411 500 3 Subsidiaries (2,082 ) 910 1,850 (671 ) 1,410 1,853 Previous year: Israel - 62 - Subsidiaries 49 - - 49 62 - Deferred: Israel 30 (200 ) (94 ) Subsidiaries 1,699 (389 ) (499 ) 1,729 (589 ) (593 ) Total taxes on income 1,107 883 1,260 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 2020 2019 Balance at January 1 1,494 771 Increase in uncertain tax positions for the current year 1,416 723 Balance at December 31 2,910 1,494 The Company does not expect unrecognized tax expenses to change significantly over the next 12 months

ENTITY-WIDE DISCLOSURE

ENTITY-WIDE DISCLOSURE	12 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
ENTITY-WIDE DISCLOSURE	NOTE 14 - ENTITY-WIDE DISCLOSURE: a. Revenue 1) Net sales by geographic area were as follows: Year ended December 31 2020 2019 2018 United States 149,488 124,199 81,063 Other 56,619 32,162 19,099 Total sales: 206,107 156,361 100,162 2) Net sales based on products' technology were as follows: Year ended December 31 2020 2019 2018 % % % Minimal-Invasive 62 79 86 Hands-Free 32 9 - Non-Invasive 6 12 14 100 100 100 3) The changes in contract liabilities are as follows: Year ended December 31 2020 2019 Balance as of January 1 19,400 9,737 Increases due to issuance of new contracts, excluding amounts recognized as revenue during the period 10,043 15,428 Revenue recognized that was included in the contract liability balance at the beginning of the period (15,555 ) (5,765 ) Balance as of December 31 13,888 19,400 Contract liability presented in non-current liabilities (1) 1,988 3,813 Contract liability presented in current liabilities 11,900 15,587 (1) As of December 31, 2020, noncurrent deferred revenue is estimated to be recognized as following: 83% in year 2022 and the rest in year 2023-2024. F - 41 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 14 - ENTITY-WIDE DISCLOSURE b. Long-Lived Assets December 31 2020 2019 Israel 916 820 United States 52 102 Other 14 13 982 935

RELATED PARTIES

RELATED PARTIES	12 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTIES	NOTE 15 - RELATED PARTIES: a. The Company receives and provides certain services from and to Home Skinovations Ltd., a related party as part of a 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 9). b. The Company’s subsidiary in Canada receives and provides certain services from and to a subsidiary of Home c. The Company’s subsidiaries in North America receive certain marketing services from SpaMedica International SRL,

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2020
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	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES c. Functional currency The U.S. dollar (“U.S. dollar” or “$“) is the currency of the primary economic environment in which the operations of the Company is conducted. Substantial revenues and a substantial portion of the operational costs are denominated in U.S. dollars. 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 balance sheet. 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. Gains or losses on disposals of shares to non-controlling interests were 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 0.35%-2.90% in 2019 and 0.15%-2.35% in 2020.
Marketable securities	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES g. Marketable securities AFS 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 (together “AFS securities”). Changes in fair value, excluding credit losses and impairments, 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. Fair value is calculated based on publicly available market information. If the amortized cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. To determine credit losses, the Company evaluates, among other, available quantitative and qualitative evidence. In addition, the Company considers specific adverse conditions related to the financial health of, and business outlook for, the investee. The decline in fair value below cost is recorded as an impairment charge in finance income or expense, net. 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. Equity Securities The Company applies 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. Changes in fair value of marketable equity securities and mutual funds, are reflected in the consolidated statements of income as finance income or expense.
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 8).
Inventories	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES 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. 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. 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 9). Upon adoption, 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 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.
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, 2020, 2019 and 2018, 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 11b).
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 13a(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 13a. 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	F - 15 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES o. Share-based compensation The Company grants share options to its employees, directors and non-employees in consideration for services rendered. See note 12(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. 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. Performance-based option expenses are calculated based on the options valuation at the grant date, and recognized based on the probability of achieving those targets. The Company assess at what scale can the performance targets be reached at each balance sheet date, and expenses are recognized accordingly. 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.
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 actual sales transactions of service contract purchased on a standalone basis and uses the residual approach to estimate the selling price of the products; and F - 16 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (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 a down payment and payments made within several month 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 includes price concessions related to installment sales contracts and other price concessions related to COVID-19 (see also note 3). The Company estimates variable consideration using the most likely method. Amounts included in the transaction price are recognized only when it is probable that a significant reversal of cumulative revenues will not occur. 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. F - 17 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES 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 and financial instruments - credit loss 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. Starting from January 1, 2020, the Company applies ASU 2016-13 “Financial Instruments Credit Losses Measurement of Credit Losses on Financial Instruments” (“the Standard”). The Company uses the Standard as part of the allowance for doubtful accounts estimated losses which takes into account a broader range of reasonable and supportable information to inform credit loss estimates. This information includes among other the historic experience, the extent and amount of the account and geographical characteristics of the account. The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements.
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, 2020, 2019 and 2018, respectively: 2020 2019 2018 Balance at beginning of year 472 706 380 Cost incurred (1,127 ) (756 ) (1,009 ) Expense recognized 1,360 522 1,335 Balance at end of year 705 472 706
Cost of revenues	F - 18 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES 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 deducted 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	F - 19 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES w. Segments The Company operates in one segment. Management 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. Entity-wide disclosures on revenue and long-lived assets are presented in note 14.
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 $329, $242 and $174 and for the years ended December 31, 2020, 2019 and 2018, respectively. The Company expects to contribute approximately $337 in the year ending December 31, 2021 to insurance companies in connection with its expected severance liabilities for the year.
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.
Treasury Shares	z. Treasury Shares Treasury shares are presented as a reduction of equity, at their cost to the Company.
Newly issued and recently adopted accounting pronouncements	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES aa. Newly issued and recently adopted accounting pronouncements Recently adopted accounting pronouncements: 1) In June 2016, the FASB issued ASU 2016-13 “Financial Instruments Credit Losses Measurement of Credit Losses Recently issued Accounting Pronouncements, not yet adopted 2) In December 2019, the FASB issued a new standard to simplify the accounting for income taxes. The guidance

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2020
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, 2020, 2019 and 2018, respectively: 2020 2019 2018 Balance at beginning of year 472 706 380 Cost incurred (1,127 ) (756 ) (1,009 ) Expense recognized 1,360 522 1,335 Balance at end of year 705 472 706

MARKETABLE SECURITIES AND FAI_2

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2020
Marketable Securities and Fair Value Measurement [Abstract]
Schedule of Marketable Securities	The following table sets forth the Company’s marketable securities for the periods indicated: December 31 2020 2019 Government bonds * 124,821 104,349 Corporate debt securities 15,118 14,023 Certificates of deposit 2,068 1,772 Total 142,007 120,144 * As of December 31, 2020 and 2019, consists of $2,555 and $2,104 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, 2020 and 2019, that are measured at fair value on a recurring basis during the period: December 31, 2020 Fair value Cost or amortized cost Gross unrealized holding loss Gross unrealized holding gains Level 2 securities: Government bonds 124,821 124,462 (12) 371 Corporate debt securities 15,118 15,040 (16) 94 Certificates of deposit 2,068 2,042 - 26 Total 142,007 141,544 (28 ) 491 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 Corporate debt securities 14,023 13,985 (15 ) 53 Certificates of deposit 1,772 1,768 - 4 Total 120,144 119,983 (53 ) 214
Schedule of Debt Securities on Maturity	As of December 31, 2020 and 2019, the Company’s debt securities had the following maturity dates: December 31 2020 2019 Due within one year 21,662 32,642 1 to 2 years 91,401 41,784 2 to 3 years 28,944 45,718 Total 142,007 120,144

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Schedule of Accounts Receivable	Accounts receivable consist of the following: December 31 2020 2019 Trade 9,396 6,186 Notes receivable 2,252 1,248 Less - allowance for doubtful debt (672 ) (432 ) 10,976 7,002 Less - non-current accounts receivable (477 ) (374 ) Total accounts receivable 10,499 6,628

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following: December 31 2020 2019 Raw materials 3,642 2,725 Finished products 11,341 6,683 Total inventories 14,983 9,408

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Composition of property and equipment grouped by major classifications is as follows: December 31 2020 2019 Computers 658 392 Office furniture and equipment 151 132 Molds 1,527 1,398 Leasehold improvements 283 234 2,619 2,156 Less: accumulated depreciation (1,637 ) (1,221 ) Total property and equipment, net 982 935

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2020
Leases [Abstract]
Schedule of Lease Expense	F - 24 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 9 - LEASES The lease cost was as follows: Year ended December 31 2020 2019 Operating lease cost 930 766
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: Year ended December 31 2020 2019 Operating cash flows from operating leases 963 786
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases was as follows: December 31, 2020 2019 Operating Leases Operating lease right-of-use assets 1,153 1,369 Other current liabilities 880 672 Operating lease liabilities 358 744 Total operating lease liabilities 1,238 1,416 Weighted Average Remaining Lease Term Operating leases 1.33 years 2.08 years Weighted Average Discount Rate Operating leases 2.75% 2.75%
Schedule of Maturities of Lease Liabilities	As of December 31, 2020, the maturities of lease liabilities were as follows: Operating Leases Year Ending December 31, 2021 896 2022 316 2023 58 Total lease payments 1,270 Less imputed interests (32 ) Total 1,238

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2020
Payables and Accruals [Abstract]
Schedule of Other Current Liabilities	Other current liabilities consist of the following: December 31 2020 2019 Employees and related expenses 10,022 8,164 Government institutions 1,224 1,539 Income tax 758 202 Other 4,716 3,300 Total other current liabilities 16,720 13,205

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Options Granted	Details Regarding Grant of Options: Year Ended December 31, 2020 Award amount Exercise price range Vesting period Expiration Employees, officers, directors, service providers and consultants: January 7, 2020 16,000* $35.04 1 Year 7 Years February 17, 2020 209,500* $19.69** 0-3 Years 7 Years March 15, 2020 1,286,150* $19.69** 0-3 Years 7 Years May 5, 2020 75,500 $24.32 0-3 Years 7 Years November 11, 2020 6,500*** $43.23 0-1 Year 7 Years Year Ended December 31, 2019 Award amount Exercise price Vesting period Expiration Employees, officers, directors, service providers and consultants: January 6, 2019 169,956 $7.49 0-3 Years 7 Years January 7, 2019 305,919 $7.49 0-3 Years 7 Years April 1, 2019 30,413 $10.23 0-2 Years 7 Years April 5, 2019 67,982 $10.23 0-3 Years 7 Years April 6, 2019 14,313 $10.23 0-3 Years 7 Years August 8, 2019 30,000 $14.00 0-2 Years 7 Years November 25, 2019 20,500* $19.69** 1 Year 7 Years * Net of options granted in March 2020 ** Modification of share-based compensation
Schedule of Outstanding and Execisable Options	a) The following tables summarize information concerning outstanding and exercisable options as of December 31, December 31, 2020 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 $0.20 109,859 1.20 109,859 1.20 $0.44 42,936 2.00 42,936 2.00 $0.56 2,978,813 3.04 2,978,813 3.04 $6.32 145,169 4.71 145,169 4.71 $7.49 376,320 5.02 335,080 5.02 $10.23 111,708 5.26 84,101 5.26 $14.00 30,000 5.62 22,500 5.62 $19.69 1,390,150 6.19 347,350 6.19 $24.32 55,000 6.35 26,376 6.35 $43.23 6,500 6.87 - - * In U.S. dollars per Ordinary Share.
Schedule of Share Based Compensation Expense	b) The following table illustrates the effect of share-based compensation on the statements of income: Year ended December 31 2020 2019 2018 Cost of sales 520 94 25 Research and development expenses 2,264 179 63 Selling and marketing expenses 9,398 1,158 1,817 General and administrative expenses 663 126 42 12,845 1,557 1,947
Schedule of Changes in Redeemable Non Controlling Interest	ii. The changes in redeemable non-controlling interest are as follow: Year ended December 31 2019 2018 Balance as of January 1 2,187 3,066 Adjustment to redemption value of redeemable non-controlling interest 130 535 Increases due to additional investment of redeemable non-controlling interest - - Waiver of redeemable non-controlling interest (2,317 ) (1,414 ) Balance as of December 31 - 2,187
Employees, officers and directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Options Granted	The following tables summarize information concerning options as of December 31, 2020 and 2019, respectively: Year ended December 31 2020 2019 Number of Options Weighted Average Exercise price* Number of Options Weighted average exercise price* Outstanding at beginning of year 9,300,858 $ 1.80 9,392,215 $ 0.74 Changes during the year: Granted 1,593,650 ** 20.16 751,333 14.18 Cancelled (112,250 )** 41.55 - - Exercised (5,378,136 ) 0.88 (616,669 ) 0.63 Forfeited (138,300 ) 22.55 (35,492 ) 8.93 Expired (19,367 ) 0.56 (190,529 ) 0.56 Outstanding at end of year 5,246,455 $ 6.86 9,300,858 $ 1.80 Exercisable at end of year 4,092,184 $ 3.37 8,932,276 $ 1.03 * In U.S. dollars per Ordinary Share ** Net of options granted and cancelled in connection with modification as described above
Schedule of Assumptions Used to Calculate Fair Value of Options Granted	F - 30 INMODE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (U.S. dollars in thousands, except per share amounts) NOTE 12 - SHAREHOLDERS' EQUITY 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 2020 2019 2018 Fair value of one ordinary share $19.69-$43.96 $7.49-$41.55 $4.86-$6.32 Dividend yield 0% 0% 0% Expected volatility 46.07%-49.22% 46.03%-51.91% 51.2% Risk-free interest rate 0.53%-1.74% 1.62%-2.60% 2.96% Early exercise multiple (“EEM”) 0% - 250% 0% - 250% 0% - 250% Contractual term 6.7-7 years 7 years 7 years

TAXES ON INCOME (Tables)

TAXES ON INCOME (Tables)	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets (liabilities)	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, 2020 and 2019 were as follows: December 31 2020 2019 Deferred tax assets in respect of: Carryforward losses on Marketable securities - 200 Subsidiaries carryforward losses 22,857 362 Other temporary differences 2,369 431 Share-based compensation 2,943 1,268 Total deferred tax asset before valuation allowance 28,169 2,261 Valuation allowance (27,999 ) (362 ) Total deferred tax asset 170 1,899 Deferred tax lability in respect to other comprehensive income (106 ) (37 ) Total deferred tax liability (106 ) (37 ) Deferred tax asset, net 64 1,862
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 2020 2019 2018 Income before taxes on income 76,132 62,041 23,625 Theoretical tax expenses at the statutory rate of InMode 23 % 23 % 23 % 17,510 14,270 5,434 Increase (decrease) in taxes on income due to: Benefits to the Benefited Enterprise (16,652 ) (13,844 ) (5,162 ) Different effective tax rates applicable to the Subsidiaries 235 49 53 NOL carry back as part of the CARES Act relief (2,894 ) - - Valuation allowance 17 60 91 Uncertain tax position 1,416 723 771 Non-deductible expenses and other permanent differences, mainly share based compensation expenses 1,426 (437 ) 73 Previous years 49 62 - 1,107 883 1,260
Schedule of Income Before Income Taxes	f. Income before income taxes is composed of the following: Year ended December 31 2020 2019 2018 InMode Ltd. 72,712 59,320 22,049 Subsidiaries outside Israel 3,420 2,721 1,576 76,132 62,041 23,625
Schedule of Tax Expenses (Tax Benefit)	NOTE 13 - TAXES ON INCOME g. Tax expenses (tax benefit): Year ended December 31 2020 2019 2018 Current: Israel 1,411 500 3 Subsidiaries (2,082 ) 910 1,850 (671 ) 1,410 1,853 Previous year: Israel - 62 - Subsidiaries 49 - - 49 62 - Deferred: Israel 30 (200 ) (94 ) Subsidiaries 1,699 (389 ) (499 ) 1,729 (589 ) (593 ) Total taxes on income 1,107 883 1,260
Schedule of Unrecognized Tax Benefits	The following table summarizes the activity of the Company unrecognized tax benefits: Year ended December 31 2020 2019 Balance at January 1 1,494 771 Increase in uncertain tax positions for the current year 1,416 723 Balance at December 31 2,910 1,494

ENTITY-WIDE DISCLOSURE (Tables)

ENTITY-WIDE DISCLOSURE (Tables)	12 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
Schedule of Net Sales by Geographic Area	1) Net sales by geographic area were as follows: Year ended December 31 2020 2019 2018 United States 149,488 124,199 81,063 Other 56,619 32,162 19,099 Total sales: 206,107 156,361 100,162
Schedule of Net Sales by Technology	2) Net sales based on products' technology were as follows: Year ended December 31 2020 2019 2018 % % % Minimal-Invasive 62 79 86 Hands-Free 32 9 - Non-Invasive 6 12 14 100 100 100
Schedule of Changes in Contract Liabilities	3) The changes in contract liabilities are as follows: Year ended December 31 2020 2019 Balance as of January 1 19,400 9,737 Increases due to issuance of new contracts, excluding amounts recognized as revenue during the period 10,043 15,428 Revenue recognized that was included in the contract liability balance at the beginning of the period (15,555 ) (5,765 ) Balance as of December 31 13,888 19,400 Contract liability presented in non-current liabilities (1) 1,988 3,813 Contract liability presented in current liabilities 11,900 15,587 (1) As of December 31, 2020, noncurrent deferred revenue is estimated to be recognized as following: 83% in year 2022 and the rest in year 2023-2024.
Schedule of Long-Lived Assets	December 31 2020 2019 Israel 916 820 United States 52 102 Other 14 13 982 935

GENERAL (Details)

GENERAL (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2019₪ / sharesshares	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2020₪ / shares	Nov. 11, 2020₪ / shares	Dec. 31, 2019₪ / shares	Aug. 31, 2019$ / shares	Jun. 30, 2019₪ / shares
Issuance of shares	500,000
Ordinary shares, par value | ₪ / shares					₪ 0.01	₪ 0.01	₪ 0.01		₪ 0.01
Proceeds from initial public offering | $			$ 69,784
Number of subsidiaries		10
United Kingdom [Member]
Percentage of interest in subsidiaries					51.00%
IPO [Member]
Issuance of shares	5,000,000
Ordinary shares, par value | ₪ / shares	₪ 0.01
Price per share | $ / shares								$ 14
IPO [Member] | Underwriters Allotment Option [Member]
Issuance of shares	5,500,000

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2020₪ / shares	Nov. 11, 2020₪ / shares	Dec. 31, 2019₪ / shares	Jun. 30, 2019₪ / shares
Provision for litigation				$ 10,000
Ordinary shares, par value | ₪ / shares					₪ 0.01	₪ 0.01	₪ 0.01	₪ 0.01
Increase operating lease right-of-use		$ 1,585
Amounts of severance payment expenses		$ 329	$ 242	$ 174
Subsequent Event [Member]
Amounts of severance payment expenses	$ 337
Minimum [Member]
Short-term deposits annual interest rate		0.15%	0.35%
Maximum [Member]
Short-term deposits annual interest rate		2.35%	2.90%

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Estimated Useful Lives) (Details)	12 Months Ended
	Dec. 31, 2020
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, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Balance at beginning of year	$ 472	$ 706	$ 380
Costs incurred	(1,127)	(756)	(1,009)
Expense recognized	1,360	522	1,335
Balance at end of year	$ 705	$ 472	$ 706

MARKETABLE SECURITIES AND FAI_3

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Marketable Securities	$ 142,007	$ 120,144
Non US Government bonds [Member]
Marketable Securities	$ 2,555	$ 2,104

MARKETABLE SECURITIES AND FAI_4

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Schedule Of Marketable Securities) (Details) - USD ($) $ in Thousands		Dec. 31, 2020	Dec. 31, 2019
Marketable Securities		$ 142,007	$ 120,144
Government bonds [Member]
Marketable Securities	[1]	124,821	104,349
Corporate Debt Securities [Member]
Marketable Securities		15,118	14,023
Certificates of Deposit [Member]
Marketable Securities		$ 2,068	$ 1,772
[1]	As of December 31, 2020 and 2019, consists of $2,555 and $2,104 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) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cost or amortized cost	$ 141,544	$ 119,983
Level 2 Securities [Member]
Fair Value	142,007	120,144
Cost or amortized cost	141,544	119,983
Gross unrealized holding loss	(28)	(53)
Gross unrealized holding gains	491	214
Level 2 Securities [Member] | Government bonds [Member]
Fair Value	124,821	104,349
Cost or amortized cost	124,462	104,230
Gross unrealized holding loss	(12)	(38)
Gross unrealized holding gains	371	157
Level 2 Securities [Member] | Corporate Debt Securities [Member]
Fair Value	15,118	14,023
Cost or amortized cost	15,040	13,985
Gross unrealized holding loss	(16)	(15)
Gross unrealized holding gains	94	53
Level 2 Securities [Member] | Certificates of Deposit [Member]
Fair Value	2,068	1,772
Cost or amortized cost	2,042	1,768
Gross unrealized holding loss
Gross unrealized holding gains	$ 26	$ 4

MARKETABLE SECURITIES AND FAI_6

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Schedule of Debt Securities on Maturity) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Marketable Securities and Fair Value Measurement [Abstract]
Due within one year	$ 21,662	$ 32,642
1 to 2 years	91,401	41,784
2 to 3 years	28,944	45,718
Total	$ 142,007	$ 120,144

ACCOUNTS RECEIVABLE (Schedule o

ACCOUNTS RECEIVABLE (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Trade	$ 9,396	$ 6,186
Notes receivable	2,252	1,248
Less - allowance for doubtful debt	(672)	(432)
Notes And Loans Receivable Net	10,976	7,002
Less - non-current accounts receivable	(477)	(374)
Total accounts receivable	$ 10,499	$ 6,628

INVENTORIES (Schedule of Invent

INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 3,642	$ 2,725
Finished products	11,341	6,683
Total inventories	$ 14,983	$ 9,408

PROPERTY AND EQUIPMENT, NET (Sc

PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	$ 2,619	$ 2,156
Less: accumulated depreciation	(1,637)	(1,221)
Total property and equipment, net	982	935
Depreciation and amortization	416	302	$ 184
Computers [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	658	392
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	151	132
Molds [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	1,527	1,398
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	$ 283	$ 234

OTHER INVESTMENTS (Details)

OTHER INVESTMENTS (Details) - USD ($)	Dec. 31, 2020	Nov. 11, 2020	Nov. 30, 2019
Ordinary shares of Medimor		62,457
Medimor Ltd [Member]
Investment Amount			$ 600
Ordinary shares of Medimor			1,369,863
Ownership interest			10.34%
Milestone Shares [Member]
Investment Amount			$ 418
Ordinary shares of Medimor			955,479
Medimor [Member]
Investment Amount			$ 181
Ordinary shares of Medimor	1,369,863		414,384
Ownership interest	14.78%
Medimor [Member] | Fully diluted basis [Member]
Ownership interest	10.34%

LEASES (Narrative) (Details)

LEASES (Narrative) (Details) ₪ in Thousands, $ in Thousands	1 Months Ended		12 Months Ended
	May 31, 2018USD ($)	May 31, 2018ILS (₪)	Dec. 31, 2020
Bank guarantee | $	$ 105
U.S Subsidiary [Member]
Lease expires			August 2022
Canadian Subsidiary [Member]
Lease expires			June 2022
NIS [Member]
Lease expires	December 2021	December 2021
Bank guarantee | ₪		₪ 339

LEASES (Schedule of Lease Expen

LEASES (Schedule of Lease Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease cost	$ 930	$ 766

LEASES (Schedule of Supplementa

LEASES (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating cash flows from operating leases	$ 963	$ 786

LEASES (Schedule of Supplemen_2

LEASES (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Operating Leases
Operating lease right-of-use assets	$ 1,153	$ 1,369
Other current liabilities	880	672
Operating lease liabilities	358	744
Total operating lease liabilities	$ 1,238	$ 1,416
Weighted Average Remaining Lease Term Operating leases	1 year 3 months 29 days	2 years 29 days
Weighted Average Discount Rate Operating leases	2.75%	2.75%

LEASES (Schedule of Maturities

LEASES (Schedule of Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
2021	$ 896
2022	316
2023	58
Total lease payments	1,270
Less imputed interests	(32)
Total operating lease liabilities	$ 1,238	$ 1,416

OTHER CURRENT LIABILITIES (Sche

OTHER CURRENT LIABILITIES (Schedule Of Other Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Employees and related expenses	$ 10,022	$ 8,164
Government institutions	1,224	1,539
Income Tax	758	202
Other	4,716	3,300
Total other current liabilities	$ 16,720	$ 13,205

COMMITMENTS AND CONTINGENT LI_2

COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Supply and open orders commitment	$ 9,585
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	Nov. 11, 2020USD ($)$ / sharesshares	Mar. 15, 2020USD ($)$ / sharesshares	Jan. 07, 2020$ / sharesshares	Jul. 24, 2019shares	Jan. 31, 2021shares	Feb. 17, 2020$ / shares	Jan. 31, 2020shares	Jan. 28, 2020$ / sharesshares	Nov. 25, 2019$ / sharesshares	Aug. 31, 2019₪ / sharesshares	Dec. 31, 2020USD ($)shares	Dec. 31, 2020USD ($)shares	Dec. 31, 2019USD ($)shares	Dec. 31, 2018USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2020₪ / shares	Nov. 11, 2020₪ / sharesshares	Dec. 31, 2019₪ / shares	Aug. 31, 2019$ / shares	Jun. 30, 2019ILS (₪)₪ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ordinary shares, par value | ₪ / shares																₪ 0.01	₪ 0.01	₪ 0.01		₪ 0.01
Ordinary shares | shares																	62,457
Exercise price | $ / shares	$ 43.23
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							100,000,000
Shares authorized amount | ₪																				₪ 1,000,000
Stock options granted | shares	6,500
Repurchase of ordinary shares | $												$ 17,218
Repurchase of ordinary shares, shares | shares											393,441
Waiver of redeemable non controlling interest | $													$ (2,317)	(1,414)
Purchase consideration | $	$ 2,700
Treasury Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchase of ordinary shares | $												17,218
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
Board of Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price | $ / shares		$ 19.69	$ 35.04			$ 43.96		$ 43.9	$ 41.55
Stock options granted | shares		1,259,150	953,000					42,500	112,250
Stock options cancelled | shares		1,259,150
2018 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of shares | shares							800,000					800,000
Shares authorized | shares											1,789,000	1,789,000
Number of options available for grant | shares											193,547	193,547
Aggregate intrinsic value | $											$ 180,509	$ 180,509
2018 Incentive Plan [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual life												3 years 6 months 7 days
Total intrinsic value of options exercised | $												$ 190,498	7,702	1,505
Fair value of options granted | $											$ 16,345	$ 16,345	$ 2,798	$ 915
Unvested options | shares											1,154,271	1,154,271
Unrecognized compensation expense | $											$ 4,345	$ 4,345
Unrecognized compensation cost, recognition period												10 months 6 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
Shares authorized | shares					3,389,000
Non-Israeli [Member] | Board of Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price | $ / shares		$ 19.69				$ 43.96			$ 41.55
Stock options granted | shares		224,500							15,000
Fair value of options granted | $		$ 3,283
Vested options | $		$ 666
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) - Employees, officers, directors, service providers and consultants [Member] - USD ($)		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019
January 7, 2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount	[1]	$ 16,000
Exercise price range, Upper Range		$ 35.04
Vesting period		1 year
Expiration		7 years
February 17, 2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount	[1]	$ 209,500
Exercise price range, Upper Range	[2]	$ 19.69
Expiration		7 years
February 17, 2020 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		0 years
February 17, 2020 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
March 15, 2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount	[1]	$ 1,286,150
Exercise price range, Upper Range	[2]	$ 19.69
Expiration		7 years
March 15, 2020 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		0 years
March 15, 2020 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
May 5, 2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount		$ 75,500
Exercise price range, Upper Range		$ 24.32
Expiration		7 years
May 5, 2020 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		0 years
May 5, 2020 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
November 11, 2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount	[3]	$ 6,500
Exercise price range, Upper Range		$ 43.23
Expiration		7 years
November 11, 2020 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		0 years
November 11, 2020 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		1 year
January 6, 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount			$ 169,956
Exercise price range, Upper Range			$ 7.49
Expiration			7 years
January 6, 2019 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			0 years
January 6, 2019 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
January 7, 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount			$ 305,919
Exercise price range, Upper Range			$ 7.49
Expiration			7 years
January 7, 2019 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			0 years
January 7, 2019 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
April 1, 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount			$ 30,413
Exercise price range, Upper Range			$ 10.23
Expiration			7 years
April 1, 2019 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			0 years
April 1, 2019 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			2 years
April 5, 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount			$ 67,982
Exercise price range, Upper Range			$ 10.23
Expiration			7 years
April 5, 2019 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			0 years
April 5, 2019 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
April 6, 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount			$ 14,313
Exercise price range, Upper Range			$ 10.23
Expiration			7 years
April 6, 2019 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			0 years
April 6, 2019 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
August 8, 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount			$ 30,000
Exercise price range, Upper Range			$ 14
Expiration			7 years
August 8, 2019 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			0 years
August 8, 2019 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			2 years
November 25, 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award amount	[1]		$ 20,500
Exercise price range, Upper Range	[2]		$ 19.69
Vesting period			1 year
Expiration			7 years
[1]	Net of options granted in March 2020
[2]	Modification of share-based compensation
[3]	GIBF Options

SHAREHOLDERS' EQUITY (Schedul_2

SHAREHOLDERS' EQUITY (Schedule Of Options Granted) (Details) - $ / shares		Nov. 11, 2020	Dec. 31, 2020		Dec. 31, 2019
Changes during the year:
Granted		6,500
Employees, officers and directors [Member]
Number of options
Outstanding at beginning of year			9,300,858		9,392,215
Changes during the year:
Granted			1,593,650	[1]	751,333
Canceled			(112,250)	[1]
Exercised			(5,378,136)		(616,669)
Forfeited			(138,300)		(35,492)
Expired			(19,367)		(190,529)
Outstanding at end of year			5,246,455		9,300,858
Exercisable at end of year			4,092,184		8,932,276
Weighted average exercise price
Outstanding at beginning of year	[2]		$ 1.80		$ 0.74
Changes during the year:
Granted	[2]		20.16		14.18
Canceled	[2]		41.55
Exercised	[2]		0.88		0.63
Forfeited	[2]		22.55		8.93
Expired	[2]		0.56		0.56
Outstanding at end of year	[2]		6.86		1.80
Exercisable at end of year	[2]		$ 3.37		$ 1.03
[1]	Net of options granted and cancelled in connection with modification as described above
[2]	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) - Employees, officers and directors [Member] - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
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
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of one ordinary share	$ 19.69	$ 7.49	$ 4.86
Expected volatility	46.07%	46.03%
Risk-free interest rate	0.53%	1.62%
Early exercise multiple	0.00%	0.00%	0.00%
Contractual term	6 years 8 months 12 days
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of one ordinary share	$ 43.96	$ 41.55	$ 6.32
Expected volatility	49.22%	51.91%
Risk-free interest rate	1.74%	2.60%
Early exercise multiple	250.00%	250.00%	250.00%
Contractual term	7 years

SHAREHOLDERS' EQUITY (Schedul_4

SHAREHOLDERS' EQUITY (Schedule Of Outstanding and Execisable Options) (Details) - $ / shares		Nov. 11, 2020	Dec. 31, 2020
Exercise prices		$ 43.23
$0.20 [Member]
Exercise prices	[1]		$ 0.20
Number of options outstanding at end of year			109,859
Weighted average remaining contractual life of outstanding options			1 year 2 months 12 days
Number of options exercisable at end of year			109,859
Weighted average remaining contractual life of eercisable options			1 year 2 months 12 days
$0.44 [Member]
Exercise prices	[1]		$ 0.44
Number of options outstanding at end of year			42,936
Weighted average remaining contractual life of outstanding options			2 years
Number of options exercisable at end of year			42,936
Weighted average remaining contractual life of eercisable options			2 years
$0.56 [Member]
Exercise prices	[1]		$ 0.56
Number of options outstanding at end of year			2,978,813
Weighted average remaining contractual life of outstanding options			3 years 14 days
Number of options exercisable at end of year			2,978,813
Weighted average remaining contractual life of eercisable options			3 years 14 days
$6.32 [Member]
Exercise prices	[1]		$ 6.32
Number of options outstanding at end of year			145,169
Weighted average remaining contractual life of outstanding options			4 years 8 months 15 days
Number of options exercisable at end of year			145,169
Weighted average remaining contractual life of eercisable options			4 years 8 months 15 days
$7.49 [Member]
Exercise prices	[1]		$ 7.49
Number of options outstanding at end of year			376,320
Weighted average remaining contractual life of outstanding options			5 years 7 days
Number of options exercisable at end of year			335,080
Weighted average remaining contractual life of eercisable options			5 years 7 days
$10.23 [Member]
Exercise prices	[1]		$ 10.23
Number of options outstanding at end of year			111,708
Weighted average remaining contractual life of outstanding options			5 years 3 months 3 days
Number of options exercisable at end of year			84,101
Weighted average remaining contractual life of eercisable options			5 years 3 months 3 days
$14.00 [Member]
Exercise prices	[1]		$ 14
Number of options outstanding at end of year			30,000
Weighted average remaining contractual life of outstanding options			5 years 7 months 13 days
Number of options exercisable at end of year			22,500
Weighted average remaining contractual life of eercisable options			5 years 7 months 13 days
$41.55 [Member]
Exercise prices	[1]		$ 19.69
Number of options outstanding at end of year			1,390,150
Weighted average remaining contractual life of outstanding options			6 years 2 months 8 days
Number of options exercisable at end of year			347,350
Weighted average remaining contractual life of eercisable options			6 years 2 months 8 days
$24.32 [Member]
Exercise prices	[1]		$ 24.32
Number of options outstanding at end of year			55,000
Weighted average remaining contractual life of outstanding options			6 years 4 months 6 days
Number of options exercisable at end of year			26,376
Weighted average remaining contractual life of eercisable options			6 years 4 months 6 days
$43.23 [Member]
Exercise prices	[1]		$ 43.23
Number of options outstanding at end of year			6,500
Weighted average remaining contractual life of outstanding options			6 years 10 months 13 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, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation income	$ 12,845	$ 1,557	$ 1,947
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation income	520	94	25
Research and Development Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation income	2,264	179	63
Selling and Marketing Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation income	9,398	1,158	1,817
General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation income	$ 663	$ 126	$ 42

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
Stockholders' Equity Note [Abstract]
Balance as of January 1	$ 2,187	$ 3,066
Adjustment to redemption value of redeemable non-controlling interest	130	535
Increases due to additional investment of redeemable non-controlling interest
Waiver of redeemable non-controlling interest	(2,317)	(1,414)
Balance as of December 31		$ 2,187

TAXES ON INCOME (Narrative) (De

TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	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		16.00%	16.00%	7.50%	16.00%	16.00%	16.00%	9.00%	12.50%	7.00%
Tax rate for recipient for dividends distributed by Preferred Company from income derived from its PTE or SPTE	20.00%
Tax rate after divdend	15.00%
Statutory rate	23.00%	23.00%	23.00%
Tax asset	$ 2,894
Accumulated tax loss carryforward	$ 81,600
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 for dividend distributed to a corporate shareholder who is not an Israeli resident			4.00%
Elsewhere [Member]
Income Tax Contingency [Line Items]
Corporate tax			12.00%							15.00%
Regulations [Member] | Minimum [Member]
Income Tax Contingency [Line Items]
Corporate tax	7.50%
Regulations [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Corporate tax	9.00%

TAXES ON INCOME (Schedule of De

TAXES ON INCOME (Schedule of Deferred Tax Assets (liabilities)) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets in respect of:
Carryforward losses on Marketable securities		$ 200
Subsidiaries carryforward losses	22,857	362
Other temporary differences	2,369	431
Share-based compensation	2,943	1,268
Total deferred tax asset before valuation allowance	28,169	2,261
Valuation allowance	(27,999)	(362)
Total deferred tax asset	170	1,899
Deferred tax lability in respect to other comprehensive income	(106)	(37)
Total deferred tax liability	(106)	(37)
Deferred tax asset, net	$ 64	$ 1,862

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, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income before taxes on income	$ 76,132	$ 62,041	$ 23,625
Theoretical tax expenses at the statutory rate of InMode	23.00%	23.00%	23.00%
Theoretical tax benefit	$ 17,510	$ 14,270	$ 5,434
Increase (decrease) in taxes on income due to:
Benefits to the Benefited Enterprise	(16,652)	(13,844)	(5,162)
Different effective tax rates applicable to the subsidiaries	235	49	53
NOL carry back as part of the CARES Act relief	(2,894)
Valuation allowance	17	60	91
Uncertain tax position	1,416	723	771
Non-deductible expenses and other permanent differences, mainly share based compensation expenses	1,426	(437)	73
Previous years	49	62
Total taxes on income	$ 1,107	$ 883	$ 1,260

TAXES ON INCOME (Schedule of In

TAXES ON INCOME (Schedule of Income Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income before taxes on income	$ 76,132	$ 62,041	$ 23,625
InMode Ltd. [member]
Income before taxes on income	72,712	59,320	22,049
Subsidiaries outside Israel [Member]
Income before taxes on income	$ 3,420	$ 2,721	$ 1,576

TAXES ON INCOME (Schedule of Ta

TAXES ON INCOME (Schedule of Tax Expenses (Tax Benefit)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current	$ (671)	$ 1,410	$ 1,853
Previous year	49	62
Deferred	1,729	(589)	(593)
Total taxes on income	1,107	883	1,260
Israel [Member]
Current	1,411	500	3
Previous year		62
Deferred	30	(200)	(94)
Subsidiaries outside Israel [Member]
Current	(2,082)	910	1,850
Previous year	49
Deferred	$ 1,699	$ (389)	$ (499)

TAXES ON INCOME (Schedule of Un

TAXES ON INCOME (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Balance at January 1	$ 1,494	$ 771
Increase in uncertain tax positions for the current year	1,416	723
Balance at December 31	$ 2,910	$ 1,494

ENTITY-WIDE DISCLOSURE (Narrati

ENTITY-WIDE DISCLOSURE (Narrative) (Details)	Dec. 31, 2022
Subsequent Event [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Percentage of non- current deferred revenue	83.00%

ENTITY-WIDE DISCLOSURE (Schedul

ENTITY-WIDE DISCLOSURE (Schedule Of Net Sales By Geographical Area) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting, Revenue Reconciling Item [Line Items]
Total sales	$ 206,107	$ 156,361	$ 100,162
United States [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Total sales	149,488	124,199	81,063
Other [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Total sales	$ 56,619	$ 32,162	$ 19,099

ENTITY-WIDE DISCLOSURE (Sched_2

ENTITY-WIDE DISCLOSURE (Schedule of Net Sales by Techonology) (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Concentration Risk [Line Items]
Total sales percentage	100.00%	100.00%	100.00%
Minimal-Invasive [Member]
Concentration Risk [Line Items]
Total sales percentage	62.00%	79.00%	86.00%
Hands-Free [Member]
Concentration Risk [Line Items]
Total sales percentage	32.00%	9.00%
Non-Invasive [Member]
Concentration Risk [Line Items]
Total sales percentage	6.00%	12.00%	14.00%

ENTITY-WIDE DISCLOSURE (Sched_3

ENTITY-WIDE DISCLOSURE (Schedule Of Changes In Contract Liabilities) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019
Segment Reporting [Abstract]
Balance as of January 1		$ 19,400	$ 9,737
Increases due to issuance of new contracts, excluding amounts recognized as revenue during the period		10,043	15,428
Revenue recognized that was included in the contract liability balance at the beginning of the period		(15,555)	(5,765)
Balance as of December 31		13,888	19,400
Contract liability presented in non-current liabilities	[1]	1,988	3,813
Contract liability presented in current liabilities		$ 11,900	$ 15,587
[1]	As of December 31, 2020, noncurrent deferred revenue is estimated to be recognized as following: 83% in year 2022 and the rest in year 2023-2024.

ENTITY-WIDE DISCLOSURE (Sched_4

ENTITY-WIDE DISCLOSURE (Schedule Of Long-Lived Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Total sales	$ 982	$ 935
Israel [Member]
Segment Reporting Information [Line Items]
Total sales	916	820
United States [Member]
Segment Reporting Information [Line Items]
Total sales	52	102
Other [Member]
Segment Reporting Information [Line Items]
Total sales	$ 14	$ 13

RELATED PARTIES (Details)

RELATED PARTIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Home Skinnovations Ltd [Member]
Related Party Transaction [Line Items]
Payment for services received	$ 82	$ 247	$ 82
Subsidiary of Home Skinnovations Ltd [Member]
Related Party Transaction [Line Items]
Payment for services received	379	341	140
Spa Medical International SRL [Member]
Related Party Transaction [Line Items]
Payment for services received	$ 307	$ 710	$ 518