Document and Entity Information
Document and Entity Information | 12 Months Ended | |
Dec. 31, 2022 shares | ||
Entity Registrant Name | InMode Ltd. | |
Entity Central Index Key | 0001742692 | |
Document Type | 20-F | |
Document Period End Date | Dec. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 001-39016 | |
Entity Incorporation, State or Country Code | L3 | |
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, Postal Zip Code | 2069206 | |
Entity Address Country | IL | |
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 | 82,544,991 | [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 | true | |
Auditor Name | Kesselman & Kesselman | |
Auditor Location | Tel-Aviv, Israel | |
Auditor Firm Id | 1309 | |
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, Postal Zip Code | 2069206 | |
Entity Address Country | IL | |
City Area Code | 972 | |
Local Phone Number | 4-9096313 | |
[1]The above number of Ordinary Shares outstanding does not include a total of 1,975,003 Ordinary Shares held at December 31, 2022, as treasury shares, all of which were repurchased by InMode Ltd. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 97,540 | $ 68,136 | |
Marketable securities (amortized cost of $384,320 and $296,243, as of December 31, 2022 and 2021, respectively) | 374,589 | 294,530 | |
Short-term bank deposits | 75,254 | 53,248 | |
Accounts receivable, net of allowance for credit losses of $836 and $1,107, as of December 31, 2022 and 2021, respectively | 26,997 | 20,236 | |
Prepaid expense and other receivables | 15,094 | 12,938 | |
Inventories | 39,897 | 21,026 | |
TOTAL CURRENT ASSETS | 629,371 | 470,114 | |
NON-CURRENT ASSETS: | |||
Accounts receivable net of allowance for credit losses of $482 and $0 as of December 31, 2022 and 2021, respectively | 3,973 | 768 | |
Deferred income tax assets | 3,094 | 1,334 | |
Operating lease right-of-use assets | 5,073 | 4,321 | |
Property and equipment, net | 2,298 | 1,404 | |
Other investments | 600 | 600 | |
TOTAL NON-CURRENT ASSETS | 15,038 | 8,427 | |
TOTAL ASSETS | 644,409 | 478,541 | |
CURRENT LIABILITIES: | |||
Accounts payable | 16,242 | 8,779 | |
Contract liabilities | 13,798 | 13,805 | |
Other liabilities | 51,980 | 29,266 | |
TOTAL CURRENT LIABILITIES | 82,020 | 51,850 | |
NON-CURRENT LIABILITIES: | |||
Contract liabilities | [1] | 3,959 | 2,751 |
Other liabilities | 303 | 4,831 | |
Operating lease liabilities | 3,509 | 3,307 | |
TOTAL NON-CURRENT LIABILITIES | 7,771 | 10,889 | |
TOTAL LIABILITIES | 89,791 | 62,739 | |
InMode Ltd. Shareholders' equity: | |||
Ordinary shares, NIS 0.01 par value, authorized 100,000,000 shares at December 31, 2022 and 2021. Issued 84,519,994 and 83,875,905 shares at December 31, 2022 and 2021, respectively. Outstanding 82,544,991 and 82,978,115 shares at December 31, 2022 and 2021, respectively. | 241 | 239 | |
Additional paid-in capital | 148,803 | 122,698 | |
Retained earnings | 495,507 | 333,987 | |
Accumulated other comprehensive loss | (7,493) | (1,319) | |
Less treasury shares, at cost: 1,975,003 and 897,790 ordinary shares at December 31, 2022 and 2021, respectively | (82,440) | (39,803) | |
TOTAL SHAREHOLDERS’ EQUITY | 554,618 | 415,802 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 644,409 | $ 478,541 | |
[1]As of December 31, 2022, noncurrent deferred revenue is estimated to be recognized as following: 83% in year 2024 and the rest in year 2025-2026. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Marketable securities, amortization | $ 384,320 | $ 296,243 |
Accounts receivable, allowance for doubtful accounts | 836 | 1,107 |
Accounts receivable net of allowance for credit losses | $ 482 | $ 0 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, issued shares | 84,519,994 | 83,875,905 |
Ordinary shares, outstanding shares | 82,544,991 | 82,978,115 |
Treasury shares, ordinary shares | 1,975,003 | 897,790 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Parentheticals 2) - ₪ / shares | Dec. 31, 2022 | Dec. 31, 2021 | May 23, 2021 | Nov. 11, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | |||||
Ordinary shares, par value | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
REVENUES | $ 454,271 | $ 357,565 | $ 206,107 |
COST OF REVENUES | 73,485 | 53,592 | 30,849 |
GROSS PROFIT | 380,786 | 303,973 | 175,258 |
OPERATING EXPENSES: | |||
Research and development | 12,425 | 9,532 | 9,467 |
Sales and marketing | 160,576 | 119,353 | 86,532 |
General and administrative | 9,931 | 8,411 | 6,418 |
Other income | 0 | (800) | 0 |
TOTAL OPERATING EXPENSES | 182,932 | 136,496 | 102,417 |
INCOME FROM OPERATIONS | 197,854 | 167,477 | 72,841 |
Finance income, net | 3,612 | 525 | 3,291 |
INCOME BEFORE TAXES | 201,466 | 168,002 | 76,132 |
INCOME TAXES | 39,946 | 2,928 | 1,107 |
NET INCOME | 161,520 | 165,074 | 75,025 |
Add: Loss (net income) attributable to non-controlling interests | 0 | (103) | 5 |
NET INCOME ATTRIBUTABLE TO INMODE LTD | $ 161,520 | $ 164,971 | $ 75,030 |
NET INCOME PER SHARE: | |||
Basic | $ 1.96 | $ 2.03 | $ 1.04 |
Diluted | $ 1.89 | $ 1.92 | $ 0.89 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE | |||
Basic | 82,482,090 | 81,444,938 | 72,114,364 |
Diluted | 85,403,714 | 86,017,203 | 84,184,598 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 161,520 | $ 165,074 | $ 75,025 |
OTHER COMPREHENSIVE INCOME: | |||
Change in net unrealized gains (loss) of marketable securities, net of tax | (6,174) | (1,675) | 232 |
TOTAL COMPREHENSIVE INCOME, net | 155,346 | 163,399 | 75,257 |
Add: Comprehensive loss (income) attributable to non-controlling interests | 0 | (103) | 5 |
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO INMODE LTD. | $ 155,346 | $ 163,296 | $ 75,262 |
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 shares [Member] | Non-controlling Interest [Member] | Total |
Begining Balance at Dec. 31, 2019 | $ 186 | $ 81,770 | $ 93,986 | $ 124 | $ 0 | $ 3,737 | $ 179,803 |
Begining Balance, Shares at Dec. 31, 2019 | 65,598,164 | ||||||
NET INCOME | $ 0 | 0 | 75,030 | 0 | 0 | (5) | 75,025 |
Other comprehensive income, net | 0 | 0 | 0 | 232 | 0 | 0 | 232 |
Share-based compensation | 0 | 12,845 | 0 | 0 | 0 | 0 | 12,845 |
Acquisition of non-controlling interest in exchange of ordinary shares (see note 13b) | 0 | 2,220 | 0 | 0 | 0 | (2,220) | 0 |
Repurchase of ordinary shares | $ 0 | 0 | 0 | 0 | (17,218) | 0 | (17,218) |
Repurchase of ordinary shares (Shares) | (786,882) | ||||||
Exercise of options | $ 30 | 4,758 | 0 | 0 | 0 | 0 | 4,788 |
Exercise of options (Shares) | 10,756,272 | ||||||
Ending Balance at Dec. 31, 2020 | $ 216 | 101,593 | 169,016 | 356 | (17,218) | 1,512 | 255,475 |
Ending Balance, shares at Dec. 31, 2020 | 75,567,554 | ||||||
NET INCOME | $ 0 | 0 | 164,971 | 0 | 0 | 103 | 165,074 |
Other comprehensive income, net | 0 | 0 | 0 | (1,675) | 0 | 0 | (1,675) |
Share-based compensation | 0 | 11,962 | 0 | 0 | 0 | 0 | 11,962 |
Acquisition of non-controlling interest in exchange of ordinary shares (see note 13b) | $ 0 | (11,165) | 0 | 0 | 12,780 | (1,615) | 0 |
Acquisition of non-controlling interest in exchange of ordinary shares (see note 13b) (Shares) | 582,826 | ||||||
Repurchase of ordinary shares | $ 0 | 0 | 0 | 0 | (35,365) | 0 | (35,365) |
Repurchase of ordinary shares (Shares) | (693,734) | ||||||
Exercise of options | $ 23 | 20,308 | 0 | 0 | 0 | 0 | 20,331 |
Exercise of options (Shares) | 7,521,469 | ||||||
Ending Balance at Dec. 31, 2021 | $ 239 | 122,698 | 333,987 | (1,319) | (39,803) | 0 | $ 415,802 |
Ending Balance, shares at Dec. 31, 2021 | 82,978,115 | 82,978,115 | |||||
NET INCOME | $ 0 | 0 | 161,520 | 0 | 0 | 0 | $ 161,520 |
Other comprehensive income, net | 0 | 0 | 0 | (6,174) | 0 | 0 | (6,174) |
Share-based compensation | 0 | 24,452 | 0 | 0 | 0 | 0 | $ 24,452 |
Repurchase of ordinary shares | $ 0 | 0 | 0 | 0 | (42,637) | 0 | |
Repurchase of ordinary shares (Shares) | (1,077,213) | (42,637) | |||||
Exercise of options | $ 2 | 1,653 | 0 | 0 | 0 | 0 | $ 1,655 |
Exercise of options (Shares) | 644,089 | ||||||
Ending Balance at Dec. 31, 2022 | $ 241 | $ 148,803 | $ 495,507 | $ (7,493) | $ (82,440) | $ 0 | $ 544,618 |
Ending Balance, shares at Dec. 31, 2022 | 82,544,991 | 82,544,991 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
NET INCOME | $ 161,520 | $ 165,074 | $ 75,025 | |
Adjustments required to reconcile net income to net cash provided by operating activities | ||||
Depreciation and amortization | 680 | 517 | 416 | |
Share-based compensation expenses | 24,452 | 11,962 | 12,845 | |
Change in allowance for credit losses of trade receivable | 449 | 516 | 442 | |
Loss on marketable securities, net | 71 | 175 | 5 | |
Finance expense (income), net | (1,210) | 1,223 | (625) | |
Deferred income tax assets, net | 84 | (770) | 1,729 | |
Changes in operating assets and liabilities: | ||||
Increase in accounts receivable | (10,415) | (10,544) | (4,416) | |
Increase in other receivables | (1,787) | (6,400) | (2,647) | |
Increase in inventories | (18,871) | (6,043) | (5,575) | |
Increase in accounts payable | 7,463 | 2,369 | 2,708 | |
Increase in other liabilities | 17,941 | 14,138 | 4,830 | |
Increase (decrease) in contract liabilities | 1,201 | 2,668 | (5,512) | |
Net cash provided by operating activities | 181,578 | 174,885 | 79,225 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Investment in short-term deposit | (93,701) | (73,090) | (55,699) | |
Proceeds from short-term deposit | 73,090 | 69,180 | 34,810 | |
Purchase of fixed assets | (1,575) | (939) | (463) | |
Purchase of marketable securities | (168,680) | (273,834) | (169,689) | |
Proceeds from sale of marketable securities | 2,303 | 93,652 | 110,536 | |
Proceeds from maturity of marketable securities | 79,089 | 24,925 | 37,200 | |
Net cash used in investing activities | (109,474) | (160,106) | (43,305) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repurchase of ordinary shares | (42,637) | (35,365) | (17,218) | |
Exercise of options | 1,552 | 20,343 | 4,776 | |
Net cash used in financing activities | (41,085) | (15,022) | (12,442) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (1,615) | (559) | 733 | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 29,404 | (802) | 24,211 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR | 68,136 | 68,938 | 44,727 | |
CASH AND CASH EQUIVALENTS AT END OF THE YEAR | 97,540 | 68,136 | 68,938 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION: | ||||
Income taxes paid | [1] | 25,843 | 1,658 | 217 |
Interest received | 4,856 | 3,358 | 2,771 | |
NON-CASH ACTIVITIES | ||||
Recognition of operating lease right-of-use assets and liabilities | 2,342 | 4,315 | 566 | |
Acquisition of non-controlling interest in exchange of ordinary shares | $ 0 | $ 12,780 | $ 0 | |
[1]Including, for 2022, payments amounting $12 million for Amendment to the Investments Law and settlements with the Israeli tax authority. See note 14a(2)(b). |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Statement of Cash Flows [Abstract] | |
Payments To Tax Authorities | $ 12 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2022 | |
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 is traded in the Nasdaq Global Select Market (the “Nasdaq”) since August 2019. 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, as well as, for use in certain women’s health conditions and procedures. 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 The Company has wholly-owned subsidiaries located in the United States and Canada (“North America”), Hong Kong, Japan, Spain, two subsidiaries in Israel, India, Australia, China, the United Kingdom (“UK”), France and Italy. During the third and fourth quarter of 2021 the Company established a second wholly owned subsidiary in Israel and a wholly owned subsidiary in Italy, respectively. The Company’s subsidiaries are referred to collectively herein as the “Subsidiaries.” The Company sells its products primarily through its Subsidiaries. See note 13b for an update regarding change in ownership of the China and UK subsidiaries. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
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. Actual results could differ from those estimates. 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 finance income (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. 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 0.50%-5.73% in2022 and 0.52%-0.87% in 2021. g. Marketable securities AFS Securities Marketable securities consist of government bonds, municipal bonds, commercial paper 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”) under current assets in the consolidated balance sheet as they represent the investment of funds available for the Company’s current operations. 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 Debt Securities and certificates of deposit as well as premium or discount amortization are included in the consolidated statements of income as finance income (expenses), net. Fair value is calculated based on publicly available market information. When the estimated fair value of a Debt Security is below its amortized cost, the Debt Security is assessed using the Current Expected Credit Losses model (in accordance with ASU 2016-13) in order to determine what portion of that difference, if any, is caused by expected credit losses. The amortized cost of the Debt Security will be reduced to its fair value if it is more likely than not that the Company is required to sell the impaired security before recovery of its amortized cost basis, or it has the intention to sell the security. If neither of these conditions are met, the Company determines whether the impairment is due to credit losses by comparing the present value of the expected cash flows of the security with its amortized cost basis. The amount of impairment recognized is limited to the excess of the amortized cost over the fair value of the security. An allowance for credit losses for the excess of amortized cost over the expected cash flows is recognized in finance income (expenses), net on the consolidated statements income. 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. h. 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 for other investments, 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. i. Inventories Inventories include raw materials and finished products and are valued at the lower of cost or net realizable value. During the year ended December 31, 2022, the Company changed the cost determination method of raw materials from first in, first out (“FIFO”) method to a “moving average” method. This voluntary change in accounting method was implemented and considered preferable because the Company's ERP system supports automatic calculation of inventory according to the “moving average” method and it allows consistency of the cost determination method among the different components of inventory. The change in method was immaterial to all periods presented. 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 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 10). k. Property and equipment Prope rty 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 depreciated using the straight-line method over the shorter of the term of the lease or the estimated useful lives 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, 2022, 2021 and 2020, 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 reasonable 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. 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) The Company may incur an additional tax liability in the event of an inter-company dividend distribution from Subsidiaries outside of Israel; no additional deferred income tax assets 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. 3) Taxes that would apply in the event of disposal of investments in Subsidiaries have not been taken into account in computing the deferred income tax assets, as it is the Company’s intent and ability to hold these investments. 4) 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. o. Advertising expenses Advertising expenses are charged to sales and marketing on the consolidated statement of income as incurred. Advertising expenses for the years ended December 31, 2022, 2021 and 2020 amounted to $10 million, $4 million, and $5 million, respectively. p. Share-based compensation The Company grants share options and restricted share units (“RSU”) (together “Share-Based Compensation”) to its employees, officers, directors and non-employees in consideration for services rendered. See note 13(a)(2) for details on outstanding share capital. The Company accounts for Share-Based Compensation 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 granted is estimated using the Binomial Model, and for each RSU granted is based on the Company’s share price at the close of the last trading day prior to the date of the grant. 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 Share-Based Compensation expenses are calculated based on the 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 Compensation transactions for acquiring goods and services from non-employees. Under the provision of the amendment, the Company measures Share-Based Compensation to non-employees in the same manner as Share-Based Compensation to employees. q. Revenue recognition The Company (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 (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. Revenues from shipping and handling activities that occur after the customer has obtained control of a good are recognized according to an accounting policy election as a fulfilment cost rather than as an additional promised service. 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. The Company estimates variable consideration using the most likely outcome amount. 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. 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. r. Allowance for doubtful accounts and financial instruments – credit loss The Company evaluates the collectability of its accounts receivable and establishes 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 maintains the allowance for doubtful account resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. s. 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, 2022, 2021 and 2020, respectively: 2022 2021 2020 Balance at beginning of year 1,248 705 472 Cost incurred (2,099 ) (1,453 ) (1,127 ) Expense recognized 2,269 1,996 1,360 Balance at end of year 1,418 1,248 705 t. 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. u. 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. v. Net income per share Basic earnings per share are computed by dividing net income attributed to InMode Ltd.’s shareholders by the weighted average number of the Company’s ordinary shares, par value NIS 0.01 per share (including fully vested RSUs), outstanding for each period, net of treasury shares. 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. w. 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. x. 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 y. Employee severance benefits The Company is required to make severance payments upon dismissal of an Israeli 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 and severance 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 $431, $405 and $329 and for the years ended December 31, 2022, 2021 and 2020, respectively. The Company expects to contribute approximately $452 in the year ending December 31, 2023 to insurance companies in connection with its expected severance liabilities for the year. z. Treasury Shares Treasury shares are presented as a reduction of equity, at their cost to the Company. |
COVID-19
COVID-19 | 12 Months Ended |
Dec. 31, 2022 | |
Covid Ninteen 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. During 2021, there has been a wide distribution of several vaccinations and medicines to overcome the pandemic. The uncertainty to which the COVID-19 pandemic impacts the Company’s business, affects management’s judgment and assumptions resulted an immaterial influence at the end of 2020 and did not have influence in 2021 and 2022. COVID-19 also resulted in re-pricing of the Company’s existing Share-Based Compensations in March of 2020 (see also note 13a). |
MARKETABLE SECURITIES AND FAIR
MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021, consisted of government bonds, municipal bonds, corporate debt securities, commercial paper 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 2022 2021 Government bonds * 339,684 264,265 Municipal bonds 2,551 2,925 Corporate debt securities 21,252 19,913 Commercial paper 4,195 - Certificates of deposit 6,907 7,427 Total 374,589 294,530 * As of December 31, 2022 and 2021, consists of $1,502 and $4,039 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(w). The following table sets forth the Company’s financial assets as of December 31, 2022 and 2021, that are measured at fair value on a recurring basis during the period: December 31, 2022 Fair value Cost or amortized cost Gross unrealized holding loss Gross unrealized holding gains Level 2 securities: Government bonds 339,684 348,687 (9,003 ) - Municipal bonds 2,551 2,674 (123 ) - Corporate debt securities 21,252 21,850 (612 ) 14 Commercial paper 4,195 4,195 - - Certificates of deposit 6,907 6,914 (7 ) - Total 374,589 384,320 (9,745 ) 14 December 31, 2021 Fair value Cost or amortized cost Gross unrealized holding loss Gross unrealized holding gains Level 2 securities: Government bonds 264,265 265,829 (1,635 ) 71 Municipal bonds 2,925 2,951 ( 26 ) - Corporate debt securities 19,913 20,041 (131 ) 3 Certificates of deposit 7,427 7,422 (1 ) 6 Total 294,530 296,243 (1,793 ) 80 As of December 31, 2022 and 2021, the Company considered, based on its evaluation, that the decreases in market value on relevant marketable securities were temporarily impaired and primarily attributable to changes in interest rates, and therefore did not result in an impairment charge in finance income (expenses), net. As of December 31, 2022 and 2021, the Company’s debt securities and certificates of deposit had the following maturity dates: December 31 2022 2021 Due within one year 243,094 61,120 1 to 2 years 124,037 141,034 2 to 3 years 7,458 92,376 Total 374,589 294,530 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 Trade 29,859 19,809 Notes receivable 2,429 2,302 Less - allowance for credit losses (1,318 ) (1,107 ) 30,970 21,004 Less - non-current accounts receivable (3,973 ) (768 ) Total current accounts receivable 26,997 20,236 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT RECIVABLES | 12 Months Ended |
Dec. 31, 2022 | |
Other Receivables, Net, Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT RECIVABLES | NOTE 6 - PREPAID EXPENSES AND OTHER CURRENT RECEIVABLES: Prepaid expenses and other current receivables consist of the following: December 31 2022 2021 Advances to suppliers 11,898 7,201 Prepaid expenses 1,928 1,203 Government institutions 879 641 Income tax 44 3,303 Other 345 590 Total other current receivables 15,094 12,938 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 7 - INVENTORIES: Inventories consist of the following: December 31 2022 2021 Raw materials 13,686 3,842 Finished products 26,211 17,184 Total inventories 39,897 21,026 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 8 - PROPERTY AND EQUIPMENT, NET: Composition of property and equipment grouped by major classifications is as follows: December 31 2022 2021 Computers 1,191 956 Office furniture and equipment 562 304 Molds 2,550 1,729 Leasehold improvements 829 569 5,132 3,558 Less: accumulated depreciation (2,834 ) (2,154 ) Total property and equipment, net 2,298 1,404 Total depreciation and amortization in respect of property and equipment were $680, $517 and $416 for the years ended December 31, 2022, 2021 and 2020, respectively. |
OTHER INVESTMENTS
OTHER INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
OTHER INVESTMENTS | NOTE 9 - OTHER INVESTMENTS: In November 2019, the Company signed a Share Purchase and Shareholders Agreement (the “SPA”) with (BY) Medimor Ltd., one of the Company’s turnkey manufacturing subcontractors (“Medimor”). Pursuant to the SPA, the Company has invested an aggregate amount of $600 in consideration for 1,369,863 ordinary shares of Medimor (which reflected at the signing date and as of December 31, 2022 a 14.78% ownership interest on an as-issued basis and 10.34% ownership interest on a fully diluted basis), of which 414,384 ordinary shares were issued upon consummation of the initial closing on December 31, 2019, and the remaining 955,479 ordinary shares were issued in July 2020 following Medimor achieving certain pre-defined milestone events. The Company’s investment in Medimor is measured at cost, less impairment and adjusted for subsequent observable price changes if any. As of December 31, 2022, 2021 and 2020, the Company did not recognize an impairment or adjustment on its other investments. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 10 - LEASES: The Company’s main leasing properties are located in Israel, USA and Canada as detailed below: a. I 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 667 thousand (approximately $190). The Company also leases vehicles for several employees in Israel for a period of three years. b. In August 2020, the Company’s U.S. subsidiary, has signed a new lease agreement, for additional lease agreement of property and for its offices (“Additional U.S Lease”). The Additional U.S. Lease is for 7 years and 4 months which began in the middle of April of 2021. The current monthly rent payment is approximately $26 . c. T $16.6 . 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. The lease cost was as follows: Year ended December 31 2022 2021 Operating lease cost 1,628 1,297 Supplemental cash flow information related to leases was as follows: Year ended December 31 2022 2021 Operating cash flows from operating leases 1,881 1,328 Supplemental balance sheet information related to leases was as follows: December 31, 2022 2021 Operating Leases Operating lease right-of-use assets 5,073 4,321 Other current liabilities 1,453 1,209 Operating lease liabilities 3,509 3,307 Total operating lease liabilities 4,962 4,516 Weighted Average Remaining Lease Term Operating leases 4.30 years 4.70 years Weighted Average Discount Rate Operating leases 2.00%-5.80 % 2.00%-2.75 % As of December 31, 2022, the maturities of lease liabilities were as follows: Operating Leases Year Ending December 31, 2023 1,583 2024 1,529 2025 666 2026 and beyond 1,495 Total lease payments 5,273 Less imputed interests (311 ) Total 4,962 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
OTHER CURRENT LIABILITIES | NOTE 11 - OTHER CURRENT LIABILITIES: Other current liabilities consist of the following: December 31 2022 2021 Employees and related expenses 19,439 17,807 Government institutions 4,052 3,178 Income tax payable 19,241 1,239 Warranty reserve 1,418 1,248 Operating lease liabilities 1,453 1,209 Other 6,377 4,585 Total other current liabilities 51,980 29,266 |
COMMITMENTS AND CONTINGECIES
COMMITMENTS AND CONTINGECIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGECIES | NOTE 12 - COMMITMENTS AND CONTINGECIES: Subcontracting Agreements The Company has an existing turnkey manufacturing agreements with three of its major subcontractors providers in Israel in connection with manufacturing and assembling the Company’s products. The Company has agreements with two of the subcontractors which are renewed automatically every year for an additional one-year period, unless either the Company or the turnkey manufacturer gives written notice three months prior to the expiration of the term of its decision not to renew the agreement. Additionally, the Company or the turnkey manufacturer has the ability to terminate the contract at any time and for any reason with a prior written notice of four months. In addition, in October 2019, the Company entered into a turnkey manufacturing agreement with another of its major subcontractors provider in Israel, Medimor. The agreement is for three years and renewed automatically every year afterwards for an additional one-year period, unless either the Company or Medimor gives written notice three months prior to the expiration of the term of its decision not to renew the agreement. Additionally, the Company or Medimor has the ability to terminate the agreement at any time and for any reason with a prior written notice of six months. As to investment in Medimor, see also note 9. 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, 2022, the subcontractors’ finished goods inventory, raw materials and open orders amounted to approximately $46,316. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 13 - 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. In September 2020, the Company approved a share repurchase program of up to two million ordinary shares, to be purchased out of the Company’s cash reserve and to be paid solely from the Company's IPO proceeds. In February 2022, the Company approved that the share repurchase program could also be funded from the proceeds of exercised options. In March 2022, the Company approved an additional repurchase program of up to one million ordinary shares, to be purchased out of our cash reserve and to be paid from the Company’s remaining IPO proceeds and from the proceeds of exercised options. During the fourth quarter of 2020, the Company purchased 786,882 shares in the amount of $17.2 million. During 2021, the Company purchased 693,734 shares in the amount of $35.4 million. In addition, during 2022, the Company purchased 1,077,213 shares in the amount of $42.6 million. As of December 31, 2022, the Company purchased 2,557,829 shares in the amount of $95.2 million under these repurchase programs. On September 30, 2021, the Company executed a 1-for-2 share split (“2021 Share Split”) of the Company’s shares by way of an issuance of bonus shares. Upon the effectiveness of the 2021 Share Split, (i) one bonus share was issued for each outstanding share, (ii) the number of ordinary shares into which each outstanding option to purchase ordinary shares is exercisable was adjusted through proportional increase, (iii) the exercise price of each exercisable share under such outstanding options to purchase ordinary shares was adjusted through proportional decrease, (iv) the number of outstanding RSUs was adjusted through proportional increase, and (v) 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 RSUs, 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 reflect the 2021 Share Split. 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 ordinary shares and options to purchase ordinary shares to Israeli employees, officers, directors, consultants and service providers. Each option under the 2008 Israeli Plan grants the right to exercise such option into one ordinary share of the Company. b) 2008 ROW Option Plan (“2008 ROW Plan”) allowing the Company to grant ordinary shares and options to purchase ordinary shares to non-Israeli employees, officers, directors, consultants and service providers. Each option under the 2008 ROW Plan grants the right to exercise such option into one ordinary share of the Company. In June 2018, the Company’s Board of Directors adopted a new incentive plan (“2018 Incentive Plan”), allowing the Company to grant ordinary shares, options to purchase ordinary shares, restricted shares and restricted share unit (“RSUs”) (together, “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 awards to U.S. employees, officers, consultants and service providers of the Company and its Subsidiaries. Each option award under 2018 Incentive Plan grants the right to exercise such option into one ordinary share of the Company. The Company’s subsidiary in U.S. may recognize under U.S. corporate tax laws, a tax benefit for RSU and options exercised for U.S. employees and U.S. service providers for tax purposes. The grant of awards to Israeli employees, officers and directors under the 2008 Israeli Plan and the 2018 Incentive consultants and service providers Upon the adoption of the 2018 Incentive Plan, the then-current pool of awards available for future grants under the 2008 Plans was canceled and returned to the Company’s authorized and un-issued share capital 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 ordinary shares as follows: on the first business day of each calendar year beginning in 2019, the number of awards 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 Company's board of directors. Total awards under 2018 Incentive Plan that have been authorized to be issued as ordinary shares: Number of awards Upon adoption of the 2018 Incentive Plan 3,578,000 * Automatic increase approved by the Board of the Company in: January 2020 1,600,000 * January 2021 1,600,000 * January 2022 800,000 January 2023 800,000 Total 8,378,000 * The number of awards has been adjusted retroactively to reflect the 2021 Share Split. As of December 31, 2022, 1,756,231 awards were available for grant under the 2018 Incentive Plan. Details Regarding Grant of Awards: During 2022 and 2021, the Company granted only RSUs to its employees, officers, directors, non-employees. Year Ended December 31, 2022 Award amount Exercise price range Vesting period Employees, officers, directors, service providers and consultants: February 9, 2022 598,455 - 1-2 Years May 1, 2022 21,500 - 1-2 Years July 27, 2022 3,000 - 1.5 Years October 26, 2022 1,500 - 1.25 Years Year Ended December 31, 2021 Award amount Exercise price range Vesting period Employees, officers, directors, service providers and consultants: February 9, 2021 511,500 - 1-2 Years May 6, 2021 23,500 - 2 Years July 27, 2021 9,000 - 1.5 Years During 2020, the Company granted only options to its employees, officers, directors, service providers and consultants. Modification of share-based compensation On March 15, 2020, the Company’s board of directors approved: (i) the re-pricing of 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 $9.845 (as further approved by a respective tax-ruling received from the Israeli tax authority), 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 $9.845. 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 449,000 outstanding options (of which 30,000 options granted on November 25, 2019 at an exercise price of $20.775 and the rest granted on February 17, 2020, at an exercise price of $21.98) that were granted to Israeli grantees under Section 102 to the Israeli Tax Ordinance the exercise price was re-priced and reduced to $9.845, and 2,518,300 options (of which 224,500 options granted on November 25, 2019 at an exercise price of $20.775, 1,906,000 options granted on January 7, 2020 at an exercise price of $17.52, 85,000 options granted on January 28, 2020 at an exercise price of $21.95 and the rest granted on February 17, 2020 at an exercise price of $21.98) were cancelled and 2,518,300 options were granted (under the same terms as originally granted but with a lower exercise price of $9.845) simultaneously to non-Israeli grantees. 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 was recognized over the remaining vesting period until December 31, 2022. *** GIBF Options Options granted as part of share exchange agreement entered into by and between the Company and Guangzhou Sino-Israel Bio-Industry Investment Fund (LLP). See note 13(b)(1) below. Share Options The following tables summarize information concerning options as of December 31, 2022 and 2021: Year ended December 31 2022 2021 Number of Options Weighted Average Exercise price* Number of Options Weighted average exercise price* Outstanding at beginning of year 2,930,727 $ 5.23 10,492,910 $ 3.43 Changes during the year: Granted - - - - Cancelled - - - - Exercised (365,799 ) 4.52 (7,521,469 ) 2.70 Forfeited (5,788 ) 10.78 (40,714 ) 9.00 Expired (5,500 ) 10.90 - - Outstanding at end of year 2,553,640 $ 5.30 2,930,727 $ 5.23 Exercisable at end of year 2,550,474 $ 5.30 2,635,973 $ 4.71 * In U.S. dollars per Ordinary Share As of December 31, 2022, the weighted-average remaining contractual life of exercisable options were 2.95 years. The total intrinsic value of options exercised during 2022, 2021 and 2020 were approximately $10,549, $277,978 and $190,498, respectively. The fair value of each option granted is estimated on the date of grant using the binomial option-pricing model, with the following assumptions: 2020 Fair value of one ordinary share $9.845-$21.98 Dividend yield 0% Expected volatility 46.07%-49.22% Risk-free interest rate 0.53%-1.74% Early exercise multiple (“EEM”) 0% - 250% Contractual term 6.7-7 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. The total fair value of options granted during the year ended December 31, 2020 was $16,345. As of December 31, 2022, the Company had 3,166 unvested options. The total unrecognized compensation cost of employee options as of December 31, 2022 is $11, which is expected to be recognized over a weighted average period of 0.25 years. The following tables summarize information concerning outstanding and exercisable options as of December 31, 2022: December 31, 2022 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 $ 0.28 641,166 1.36 641,166 1.36 $ 0.29 203,438 1.42 203,438 1.42 $ 3.16 211,782 2.71 211,782 2.71 $ 3.75 272,741 3.02 272,741 3.02 $ 5.11 99,360 3.26 99,360 3.26 $ 7.00 42,000 3.61 42,000 3.61 $ 9.85 1,044,265 4.16 1,041,099 4.16 $ 12.16 32,388 4.35 32,388 4.35 $ 21.62 6,500 4.86 6,500 4.86 * In U.S. dollars per Ordinary Share The aggregate intrinsic value of total vested and exercisable options as of December 31, 2022 is $77,537. Restricted Share Unit The following tables summarize information concerning RSUs as of December 31, 2022 and 2021: Year ended December 31 Year ended December 31 2022 2021 Weighted Weighted Average Average Number of Grant Date Number of Grant Date RSUs Fair Value RSUs Fair Value Outstanding at beginning of year 508,080 35.48 - - Changes during the year: Granted 624,455 49.35 544,000 35.44 Exercised (278,290 ) 34.98 - - Forfeited (49,670 ) 46.43 (35,920 ) 34.87 Outstanding at end of year * 804,575 45.74 508,080 35.48 * As of December 31, 2022, 517,076 RSUs were vested and were settled by issuance of respective shares at the beginning of January 2023. Each RSU represents the right to receive one ordinary share of the Company upon the vesting thereof. The fair value of an RSU is identical to the value of the underlying share at the close of the last trading day prior to the day of grant. The fair value of each RSU granted in 2022 were $50.37, $25.11, $27.77 and $33.39, and in 2021 were $34.87, $40.6 and $54.61 based on the Company’s share price at closing of trading day prior to the day of grant. The total fair value of RSUs granted during the year ended December 31, 2022 and 2021, was $30,817 and $19,279, respectively. As of December 31, 2022, the Company had 287,499 unvested RSUs. The total unrecognized compensation cost of employee RSUs as of December 31, 2022 is $13,907, which is expected to be recognized over a weighted average period of 0.99 years. The aggregate intrinsic value of total exercisable RSUs as of December 31, 2022 is $18,460. The following table illustrates the effect of share-based compensation on the consolidated statements of income: Year ended December 31 2022 2021 2020 Cost of sales 1,917 1,108 520 Research and development expenses 3,166 1,554 2,264 Selling and marketing expenses 17,302 8,274 9,398 General and administrative expenses 2,067 1,026 663 24,452 11,962 12,845 b. Non-Controlling Interests: 1) From 2016 the Company was in joint venture agreement (the “JV Agreement”) with Guangzhou Sino-Israel Bio-Industry Investment Fund (LLP) (“GIBF”), ”), and an Equity Joint Venture Company (“JVC”) was established, in which the Company had 51% interest upon establishment. the non-controlling partner equity interests in JVC has been considered and treated as a non-controlling interest. On November 11, 2020 (the “Signing Date”), the Company, GIBF and JVC entered into a share exchange agreement (the “JVC Exchange Agreement”) whereby, GIBF sold 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 JV Agreement, in exchange for a purchase consideration of $2,700 (the “Purchase Consideration”) which was paid by the Company at the closing of such JVC Exchange Agreement in January 2021, by way of issuance to GIBF by the Company, in a private placement, of 124,914 of the Company’s ordinary shares, par value NIS 0.01, which reflected the Purchase Consideration amount at the time of approval of the JVC Exchange Agreement by the Company. For certain services provided by GIBF to the JVC, the Company has granted GIBF 13,000 options to purchase ordinary shares of the Company, at an exercise price of $21.615. 2) On April 23, 2021, the Company, Dilazar Limited (“Dilazar”), Wigmore and Invasix UK entered into a share exchange agreement (the “UK Exchange Agreement”) whereby, Dilazar (which owned 49% of the Invasix UK’s shares immediately prior to the UK Exchange Agreement, which shares were previously transferred to Dilazar from its wholly-owned subsidiary Wigmore) sold to the Company all of its outstanding share capital in Invasix UK and Wigmore sold to the Company all of its rights pursuant to the Founders Memorandum of Understanding, dated March 4, 2014, by and between Wigmore and the Company, in exchange for the issuance at closing to Dilazar by the Company in a private placement of 457,912 of the Company’s ordinary shares, par value NIS 0.01. Upon closing, in May 2021, 457,912 of the Company’s ordinary shares were issued to Dilazar from the Company’s treasury shares. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14 - INCOME TAXES: a. InMode Ltd. The Company is taxed according to Israeli tax laws: 1) Measurement of results for tax purposes Since 2008 and 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 and onwards, the Company’s results for Israeli tax purposes are measured in U.S dollars based on the Dollar Regulations which the Company chose to implement for Israeli tax purposes (detailed rules apply in this regard). 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) Basis of taxation a) Incentives Applicable until 2021 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 was tax exempt from 2012 to 2021 for income derived from the Benefited Enterprise. See also note 14a(2)(b). b) Incentives Applicable starting 2022 - The New Technological Enterprise Incentives Regime – Amendment 73 to the Investment Law 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. Under the Regulations the Company’s tax rate is expected to be approximately 7.5%. Amendment 74 to the Investment Law Pursuant to the amendment to the Investments Law which became effective on November 15, 2021, a company that elects by November 15, 2022 to pay a reduced corporate tax rate as set forth in that amendment (rather than the regular corporate tax rate applicable to Approved Enterprise income) with respect to undistributed exempt income accumulated by the company until December 31, 2020 will be entitled to distribute a dividend from such income or to be used for any other reason found by the company, without being required to pay additional corporate tax. The Company elected to take advantage of the amendment, and during November 2022 has paid NIS 42.5 million ($12.0 million) as a one-time payment, and as a result NIS 591 million (approximately $165.7 million) of the Company’s undistributed exempt income for years 2012 until 2020 are entitled to be distributed as dividend or to be used for any other reason found by the Company without being required to pay additional corporate tax. As a result, the Company is required to invest NIS 32 million (approximately $9 million) in its industrial enterprises in Israel over a five year period. Such investment may be in the form of the acquisition of industrial assets (excluding real estate assets), investment in R&D in Israel, or payroll payments to new employees to be hired by the enterprise. 3) Corporate tax rate in Israel The Israeli companies are 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 As of December 31, 2022, the Company’s subsidiary in U.S has an accumulated tax loss carryforward of approximately $221 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 tax assets Deferred income tax assets 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, 2022 and 2021 were as follows: December 31 2022 2021 Deferred tax assets in respect of: Subsidiaries carryforward losses 60,229 58,389 Other temporary differences 2,369 2,874 Share-based compensation 5,073 2,884 Deferred tax asset in respect to other comprehensive loss 2,238 394 Total deferred tax assets before valuation allowance 69,909 64,541 Valuation allowance (66,815 ) (63,207 ) Total deferred tax assets 3,094 1,334 Deferred taxes are computed using the tax rates expected to be in effect when those differences reverse. 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 2022 2021 2020 Income before taxes on income 201,466 168,002 76,132 Theoretical tax expenses at the statutory rate of InMode 23 % 23 % 23 % 46,337 38,640 17,510 Increase (decrease) in taxes on income due to: Benefits to the Benefited Enterprise (29,429 ) (37,478 ) (16,652 ) Different effective tax rates applicable to the Subsidiaries (1,453 ) (2,033 ) 235 NOL carry back as part of the CARES Act relief - - (2,894 ) Valuation allowance 130 40 17 Uncertain tax position 303 1,921 1,416 Non-deductible expenses and other permanent differences, mainly share based compensation expenses 1,842 1,838 1,426 Previous year - - 49 Amendment to the Investments Law payment - see also note 14a(2)(b) 12,017 - - settlements with the Israeli tax authority net of decrease of related uncertain tax 10,199 - - 39,946 2,928 1,107 e. Tax assessments In February 2022, the Israeli Company settled the 2017-2020 income tax assessment with the Israeli tax authority, paying $1.3 million. also see Note 14a(2)(b). In December 2022 the Company reached an agreement with the Israeli Tax Authority under which the Company will pay NIS 50.2 million (approximately $14.3 million) on its undistributed exempt income for the year ended December 31, 2021, see also note 17. As a result, NIS 517.8 million (approximately $147.5 million) of the Company’s undistributed exempt income for 2021 may be distributed or used by the Company without being subject to additional corporate tax. In accordance with the Israel Income Tax Ordinance, as of December 31, 2022, all tax assessments of the Israeli Company through tax year 2021 are considered final – see also note 14a(2)(b). In addition, all tax assessments of one of the Company’s subsidiaries in Israel through tax year 2017 are considered final. Another Israeli subsidiary was established in 2022 and therefore has no previous open tax assessments. As of December 31, 2022, all tax assessments on the Company’s subsidiary in the United States, through tax year 2018, are considered final, in accordance with the tax law in its country of residence. The other Company’s subsidiaries open tax years, range from 2017-2022, in their relevant jurisdictions. f. Income before income taxes is composed of the following: Year ended December 31 2022 2021 2020 InMode Ltd. and Israeli subsidiaries 196,354 163,370 72,712 Subsidiaries outside of Israel 5,112 4,632 3,420 201,466 168,002 76,132 g. Tax expenses (tax benefit): Year ended December 31 2022 2021 2020 Current: Israel 38,248 3,829 1,411 Subsidiaries 1,614 (131 ) (2,033 ) 39,862 3,698 (622 ) Deferred: Israel 84 (770 ) 30 Subsidiaries - - 1,699 84 (770 ) 1,729 Total taxes on income 39,946 2,928 1,107 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’s unrecognized tax benefits: Year ended December 31 2022 2021 Balance at January 1 4,831 2,910 Decrease in uncertain tax positions for the previous years (4,831 ) (804 ) Increase in uncertain tax positions for the current year , net 303 2,725 Balance at December 31 303 4,831 The Company does not expect uncertain tax positions to change significantly over the next 12 months. |
ENTITY-WIDE DISCLOSURE
ENTITY-WIDE DISCLOSURE | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
ENTITY-WIDE DISCLOSURE | NOTE 15 - ENTITY-WIDE DISCLOSURE: a. Revenue 1) Net sales by geographic area were as follows: Year ended December 31 2022 2021 2020 United States 298,612 237,263 149,488 Europe 49,274 36,588 15,881 Other 106,385 83,714 40,738 Total sales: 454,271 357,565 206,107 2) Net sales based on products' technology were as follows: Year ended December 31 2022 2021 2020 % % % Minimal-Invasive 81 72 62 Hands-Free 10 20 32 Non-Invasive 9 8 6 100 100 100 3) The changes in contract liabilities are as follows: Year ended December 31 2022 2021 Balance as of January 1 16,556 13,888 Increases due to issuance of new contracts, excluding amounts recognized as revenue during the period 14,987 14,527 Revenue recognized that was included in the contract liability balance at the beginning of the period (13,786 ) (11,859 ) Balance as of December 31 17,757 16,556 Contract liability presented in non-current liabilities (1) 3,959 2,751 Contract liability presented in current liabilities 13,798 13,805 (1) As of December 31, 2022, non-current deferred revenue is estimated to be recognized as following: 82% in year 2024 and the rest in year 2025-2026. b. Long-Lived Assets December 31 2022 2021 Israel 3,911 3,747 United States 5,938 2,996 Other 2,095 350 11,944 7,093 |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 16 - RELATED PARTIES: a. The Company receives and provides certain services from and to Home Skinovations Ltd., a related party as part of a service agreement between them. The services include an office sublease in Israel, use of certain computer hardware and switchboard infrastructure, certain software licenses, joint purchases of employee’s welfare products and services from third parties and limited manpower services. The Chairman of the Board and Chief Executive Officer of the Company is also a substantial shareholder and board member of Home Skinovations Ltd. and one of the Company’s directors, serves on the board of directors of Home Skinovations Ltd . The Company recorded expenses related to services received and provided from Home Skinovations Ltd. of $ 332 , $ 239 and $ 82 for the years ended December 31, 2022, 2021 and 2020, respectively. In February 2022 the Company have entered into an Asset Purchase Agreement with Home Skinovations, whereby Home Skinovations Ltd. sold and assigned to the Company all of Home Skinovations Ltd.’s right, title and interest in and to Home Skinovations Ltd.’s Spa segment assets (including molds, tooling, inventory and trademarks) and further granted the Company an exclusive license to certain IP rights of Home Skinovations Ltd., all the foregoing in consideration for an aggregate amount of $497. b. The Company’s subsidiary in Canada receives and provides certain services from and to a subsidiary of Home Skinovations Ltd. in Canada as part of a service agreement between them. The services include mobile phone services, an office sublease, use of certain computer hardware and switchboard infrastructure, certain software licenses, joint purchases of employee’s welfare products and services from third parties and limited manpower services. In relation to these services received and provided, the Company recorded expenses in the amount of $ 123, $ 433 and $ 379 for the years ended December 31, 2022, 2021 and 2020, respectively. c. The Company’s subsidiaries in North America received marketing services from SpaMedica International SRL, which was amalgamated with an affiliate company into the Company’s major shareholder BoomerangFX International SRL during 2021. Dr. Stephan Mulholland is a beneficiary owner of 100% of our major shareholder BoomerangFX. The Company recorded expenses related to those services in the amount of $ 172 and $307, for the years ended December 31, 2021 and 2020, respectively. Starting from 2022 calendar year, $ 723 for the years ended December 31, 2022. d. The Company receives certain investment portfolio management services from Himalaya Family Office Consulting Ltd., with respect to part of its investment portfolio. The Chairman of the Board and Chief Executive Officer of the Company, is a minor shareholder and a board member of Himalaya Family Office Consulting Ltd. In relation to these services, the Company recorded expenses in the amount of $ 100, $ 90 and $ 94 for the years ended December 31, 2022, 2021 and 2020, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 - SUBSEQUENT EVENTS During January 2023, the Company paid NIS 50.2 million (approximately $14.3 million) according to the agreement with the Israeli Tax Authority for its undistributed exempt income for the year ended December 31, 2021. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | a. Basis of presentation The Company’s consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). |
Use of estimates | b. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Functional currency | c. Functional currency The U.S. dollar (“U.S. dollar” or “$”) is the currency of the primary economic environment in which the operations 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 finance income (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. |
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 0.50%-5.73% in2022 and 0.52%-0.87% in 2021. |
Marketable securities | g. Marketable securities AFS Securities Marketable securities consist of government bonds, municipal bonds, commercial paper 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”) under current assets in the consolidated balance sheet as they represent the investment of funds available for the Company’s current operations. 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 Debt Securities and certificates of deposit as well as premium or discount amortization are included in the consolidated statements of income as finance income (expenses), net. Fair value is calculated based on publicly available market information. When the estimated fair value of a Debt Security is below its amortized cost, the Debt Security is assessed using the Current Expected Credit Losses model (in accordance with ASU 2016-13) in order to determine what portion of that difference, if any, is caused by expected credit losses. The amortized cost of the Debt Security will be reduced to its fair value if it is more likely than not that the Company is required to sell the impaired security before recovery of its amortized cost basis, or it has the intention to sell the security. If neither of these conditions are met, the Company determines whether the impairment is due to credit losses by comparing the present value of the expected cash flows of the security with its amortized cost basis. The amount of impairment recognized is limited to the excess of the amortized cost over the fair value of the security. An allowance for credit losses for the excess of amortized cost over the expected cash flows is recognized in finance income (expenses), net on the consolidated statements income. 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. |
Other Investments | h. 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 for other investments, 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. |
Inventories | i. Inventories Inventories include raw materials and finished products and are valued at the lower of cost or net realizable value. During the year ended December 31, 2022, the Company changed the cost determination method of raw materials from first in, first out (“FIFO”) method to a “moving average” method. This voluntary change in accounting method was implemented and considered preferable because the Company's ERP system supports automatic calculation of inventory according to the “moving average” method and it allows consistency of the cost determination method among the different components of inventory. The change in method was immaterial to all periods presented. 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 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 10). |
Property and equipment | k. Property and equipment Prope rty 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 depreciated using the straight-line method over the shorter of the term of the lease or the estimated useful lives 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, 2022, 2021 and 2020, 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 reasonable 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. |
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) The Company may incur an additional tax liability in the event of an inter-company dividend distribution from Subsidiaries outside of Israel; no additional deferred income tax assets 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. 3) Taxes that would apply in the event of disposal of investments in Subsidiaries have not been taken into account in computing the deferred income tax assets, as it is the Company’s intent and ability to hold these investments. 4) 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. |
Advertising expenses | o. Advertising expenses Advertising expenses are charged to sales and marketing on the consolidated statement of income as incurred. Advertising expenses for the years ended December 31, 2022, 2021 and 2020 amounted to $10 million, $4 million, and $5 million, respectively. |
Share-based compensation | p. Share-based compensation The Company grants share options and restricted share units (“RSU”) (together “Share-Based Compensation”) to its employees, officers, directors and non-employees in consideration for services rendered. See note 13(a)(2) for details on outstanding share capital. The Company accounts for Share-Based Compensation 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 granted is estimated using the Binomial Model, and for each RSU granted is based on the Company’s share price at the close of the last trading day prior to the date of the grant. 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 Share-Based Compensation expenses are calculated based on the 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 Compensation transactions for acquiring goods and services from non-employees. Under the provision of the amendment, the Company measures Share-Based Compensation to non-employees in the same manner as Share-Based Compensation to employees. |
Revenue recognition | q. Revenue recognition The Company (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 (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. Revenues from shipping and handling activities that occur after the customer has obtained control of a good are recognized according to an accounting policy election as a fulfilment cost rather than as an additional promised service. 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. The Company estimates variable consideration using the most likely outcome amount. 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. 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 and financial instruments - credit loss | r. Allowance for doubtful accounts and financial instruments – credit loss The Company evaluates the collectability of its accounts receivable and establishes 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 maintains the allowance for doubtful account resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. |
Warranty reserve | s. 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, 2022, 2021 and 2020, respectively: 2022 2021 2020 Balance at beginning of year 1,248 705 472 Cost incurred (2,099 ) (1,453 ) (1,127 ) Expense recognized 2,269 1,996 1,360 Balance at end of year 1,418 1,248 705 |
Cost of revenues | t. 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 | u. 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 | v. Net income per share Basic earnings per share are computed by dividing net income attributed to InMode Ltd.’s shareholders by the weighted average number of the Company’s ordinary shares, par value NIS 0.01 per share (including fully vested RSUs), outstanding for each period, net of treasury shares. 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. |
Fair value measurement | w. 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 | x. 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 |
Employee severance benefits | y. Employee severance benefits The Company is required to make severance payments upon dismissal of an Israeli 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 and severance 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 $431, $405 and $329 and for the years ended December 31, 2022, 2021 and 2020, respectively. The Company expects to contribute approximately $452 in the year ending December 31, 2023 to insurance companies in connection with its expected severance liabilities for the year. |
Treasury Shares | z. Treasury Shares Treasury shares are presented as a reduction of equity, at their cost to the Company. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Estimated Useful Lives | Prope rty 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, 2022, 2021 and 2020, respectively: 2022 2021 2020 Balance at beginning of year 1,248 705 472 Cost incurred (2,099 ) (1,453 ) (1,127 ) Expense recognized 2,269 1,996 1,360 Balance at end of year 1,418 1,248 705 |
MARKETABLE SECURITIES AND FAI_2
MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 Government bonds * 339,684 264,265 Municipal bonds 2,551 2,925 Corporate debt securities 21,252 19,913 Commercial paper 4,195 - Certificates of deposit 6,907 7,427 Total 374,589 294,530 * As of December 31, 2022 and 2021, consists of $1,502 and $4,039 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, 2022 and 2021, that are measured at fair value on a recurring basis during the period: December 31, 2022 Fair value Cost or amortized cost Gross unrealized holding loss Gross unrealized holding gains Level 2 securities: Government bonds 339,684 348,687 (9,003 ) - Municipal bonds 2,551 2,674 (123 ) - Corporate debt securities 21,252 21,850 (612 ) 14 Commercial paper 4,195 4,195 - - Certificates of deposit 6,907 6,914 (7 ) - Total 374,589 384,320 (9,745 ) 14 December 31, 2021 Fair value Cost or amortized cost Gross unrealized holding loss Gross unrealized holding gains Level 2 securities: Government bonds 264,265 265,829 (1,635 ) 71 Municipal bonds 2,925 2,951 ( 26 ) - Corporate debt securities 19,913 20,041 (131 ) 3 Certificates of deposit 7,427 7,422 (1 ) 6 Total 294,530 296,243 (1,793 ) 80 |
Schedule of Debt Securities on Maturity | As of December 31, 2022 and 2021, the Company’s debt securities and certificates of deposit had the following maturity dates: December 31 2022 2021 Due within one year 243,094 61,120 1 to 2 years 124,037 141,034 2 to 3 years 7,458 92,376 Total 374,589 294,530 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following: December 31 2022 2021 Trade 29,859 19,809 Notes receivable 2,429 2,302 Less - allowance for credit losses (1,318 ) (1,107 ) 30,970 21,004 Less - non-current accounts receivable (3,973 ) (768 ) Total current accounts receivable 26,997 20,236 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT RECIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Receivables, Net, Current [Abstract] | |
Schedule of prepaid expenses and other current receivables | Prepaid expenses and other current receivables consist of the following: December 31 2022 2021 Advances to suppliers 11,898 7,201 Prepaid expenses 1,928 1,203 Government institutions 879 641 Income tax 44 3,303 Other 345 590 Total other current receivables 15,094 12,938 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31 2022 2021 Raw materials 13,686 3,842 Finished products 26,211 17,184 Total inventories 39,897 21,026 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Composition of property and equipment grouped by major classifications is as follows: December 31 2022 2021 Computers 1,191 956 Office furniture and equipment 562 304 Molds 2,550 1,729 Leasehold improvements 829 569 5,132 3,558 Less: accumulated depreciation (2,834 ) (2,154 ) Total property and equipment, net 2,298 1,404 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Expense | The lease cost was as follows: Year ended December 31 2022 2021 Operating lease cost 1,628 1,297 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Year ended December 31 2022 2021 Operating cash flows from operating leases 1,881 1,328 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: December 31, 2022 2021 Operating Leases Operating lease right-of-use assets 5,073 4,321 Other current liabilities 1,453 1,209 Operating lease liabilities 3,509 3,307 Total operating lease liabilities 4,962 4,516 Weighted Average Remaining Lease Term Operating leases 4.30 years 4.70 years Weighted Average Discount Rate Operating leases 2.00%-5.80 % 2.00%-2.75 % |
Schedule of Maturities of Lease Liabilities | As of December 31, 2022, the maturities of lease liabilities were as follows: Operating Leases Year Ending December 31, 2023 1,583 2024 1,529 2025 666 2026 and beyond 1,495 Total lease payments 5,273 Less imputed interests (311 ) Total 4,962 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following: December 31 2022 2021 Employees and related expenses 19,439 17,807 Government institutions 4,052 3,178 Income tax payable 19,241 1,239 Warranty reserve 1,418 1,248 Operating lease liabilities 1,453 1,209 Other 6,377 4,585 Total other current liabilities 51,980 29,266 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Awards Authorized to be Issued | Total awards under 2018 Incentive Plan that have been authorized to be issued as ordinary shares: Number of awards Upon adoption of the 2018 Incentive Plan 3,578,000 * Automatic increase approved by the Board of the Company in: January 2020 1,600,000 * January 2021 1,600,000 * January 2022 800,000 January 2023 800,000 Total 8,378,000 * The number of awards has been adjusted retroactively to reflect the 2021 Share Split. |
Schedule of Options Granted | During 2022 and 2021, the Company granted only RSUs to its employees, officers, directors, non-employees. Year Ended December 31, 2022 Award amount Exercise price range Vesting period Employees, officers, directors, service providers and consultants: February 9, 2022 598,455 - 1-2 Years May 1, 2022 21,500 - 1-2 Years July 27, 2022 3,000 - 1.5 Years October 26, 2022 1,500 - 1.25 Years Year Ended December 31, 2021 Award amount Exercise price range Vesting period Employees, officers, directors, service providers and consultants: February 9, 2021 511,500 - 1-2 Years May 6, 2021 23,500 - 2 Years July 27, 2021 9,000 - 1.5 Years |
Schedule of Outstanding and Exercisable Options | The following tables summarize information concerning outstanding and exercisable options as of December 31, 2022: December 31, 2022 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 $ 0.28 641,166 1.36 641,166 1.36 $ 0.29 203,438 1.42 203,438 1.42 $ 3.16 211,782 2.71 211,782 2.71 $ 3.75 272,741 3.02 272,741 3.02 $ 5.11 99,360 3.26 99,360 3.26 $ 7.00 42,000 3.61 42,000 3.61 $ 9.85 1,044,265 4.16 1,041,099 4.16 $ 12.16 32,388 4.35 32,388 4.35 $ 21.62 6,500 4.86 6,500 4.86 * In U.S. dollars per Ordinary Share |
Schedule of Share Based Compensation Expense | The following table illustrates the effect of share-based compensation on the consolidated statements of income: Year ended December 31 2022 2021 2020 Cost of sales 1,917 1,108 520 Research and development expenses 3,166 1,554 2,264 Selling and marketing expenses 17,302 8,274 9,398 General and administrative expenses 2,067 1,026 663 24,452 11,962 12,845 |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Options Granted | The following tables summarize information concerning RSUs as of December 31, 2022 and 2021: Year ended December 31 Year ended December 31 2022 2021 Weighted Weighted Average Average Number of Grant Date Number of Grant Date RSUs Fair Value RSUs Fair Value Outstanding at beginning of year 508,080 35.48 - - Changes during the year: Granted 624,455 49.35 544,000 35.44 Exercised (278,290 ) 34.98 - - Forfeited (49,670 ) 46.43 (35,920 ) 34.87 Outstanding at end of year * 804,575 45.74 508,080 35.48 * As of December 31, 2022, 517,076 RSUs were vested and were settled by issuance of respective shares at the beginning of January 2023. |
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, 2022 and 2021: Year ended December 31 2022 2021 Number of Options Weighted Average Exercise price* Number of Options Weighted average exercise price* Outstanding at beginning of year 2,930,727 $ 5.23 10,492,910 $ 3.43 Changes during the year: Granted - - - - Cancelled - - - - Exercised (365,799 ) 4.52 (7,521,469 ) 2.70 Forfeited (5,788 ) 10.78 (40,714 ) 9.00 Expired (5,500 ) 10.90 - - Outstanding at end of year 2,553,640 $ 5.30 2,930,727 $ 5.23 Exercisable at end of year 2,550,474 $ 5.30 2,635,973 $ 4.71 * In U.S. dollars per Ordinary Share |
Schedule of Assumptions Used to Calculate Fair Value of Options Granted | The fair value of each option granted is estimated on the date of grant using the binomial option-pricing model, with the following assumptions: 2020 Fair value of one ordinary share $9.845-$21.98 Dividend yield 0% Expected volatility 46.07%-49.22% Risk-free interest rate 0.53%-1.74% Early exercise multiple (“EEM”) 0% - 250% Contractual term 6.7-7 years |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets (liabilities) | Deferred income tax assets 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, 2022 and 2021 were as follows: December 31 2022 2021 Deferred tax assets in respect of: Subsidiaries carryforward losses 60,229 58,389 Other temporary differences 2,369 2,874 Share-based compensation 5,073 2,884 Deferred tax asset in respect to other comprehensive loss 2,238 394 Total deferred tax assets before valuation allowance 69,909 64,541 Valuation allowance (66,815 ) (63,207 ) Total deferred tax assets 3,094 1,334 |
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 2022 2021 2020 Income before taxes on income 201,466 168,002 76,132 Theoretical tax expenses at the statutory rate of InMode 23 % 23 % 23 % 46,337 38,640 17,510 Increase (decrease) in taxes on income due to: Benefits to the Benefited Enterprise (29,429 ) (37,478 ) (16,652 ) Different effective tax rates applicable to the Subsidiaries (1,453 ) (2,033 ) 235 NOL carry back as part of the CARES Act relief - - (2,894 ) Valuation allowance 130 40 17 Uncertain tax position 303 1,921 1,416 Non-deductible expenses and other permanent differences, mainly share based compensation expenses 1,842 1,838 1,426 Previous year - - 49 Amendment to the Investments Law payment - see also note 14a(2)(b) 12,017 - - settlements with the Israeli tax authority net of decrease of related uncertain tax 10,199 - - 39,946 2,928 1,107 |
Schedule of Income Before Income Taxes | f. Income before income taxes is composed of the following: Year ended December 31 2022 2021 2020 InMode Ltd. and Israeli subsidiaries 196,354 163,370 72,712 Subsidiaries outside of Israel 5,112 4,632 3,420 201,466 168,002 76,132 |
Schedule of Tax Expenses (Tax Benefit) | g. Tax expenses (tax benefit): Year ended December 31 2022 2021 2020 Current: Israel 38,248 3,829 1,411 Subsidiaries 1,614 (131 ) (2,033 ) 39,862 3,698 (622 ) Deferred: Israel 84 (770 ) 30 Subsidiaries - - 1,699 84 (770 ) 1,729 Total taxes on income 39,946 2,928 1,107 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity of the Company’s unrecognized tax benefits: Year ended December 31 2022 2021 Balance at January 1 4,831 2,910 Decrease in uncertain tax positions for the previous years (4,831 ) (804 ) Increase in uncertain tax positions for the current year , net 303 2,725 Balance at December 31 303 4,831 |
ENTITY-WIDE DISCLOSURE (Tables)
ENTITY-WIDE DISCLOSURE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Geographic Area | 1) Net sales by geographic area were as follows: Year ended December 31 2022 2021 2020 United States 298,612 237,263 149,488 Europe 49,274 36,588 15,881 Other 106,385 83,714 40,738 Total sales: 454,271 357,565 206,107 |
Schedule of Net Sales by Technology | 2) Net sales based on products' technology were as follows: Year ended December 31 2022 2021 2020 % % % Minimal-Invasive 81 72 62 Hands-Free 10 20 32 Non-Invasive 9 8 6 100 100 100 |
Schedule of Changes in Contract Liabilities | 3) The changes in contract liabilities are as follows: Year ended December 31 2022 2021 Balance as of January 1 16,556 13,888 Increases due to issuance of new contracts, excluding amounts recognized as revenue during the period 14,987 14,527 Revenue recognized that was included in the contract liability balance at the beginning of the period (13,786 ) (11,859 ) Balance as of December 31 17,757 16,556 Contract liability presented in non-current liabilities (1) 3,959 2,751 Contract liability presented in current liabilities 13,798 13,805 (1) As of December 31, 2022, non-current deferred revenue is estimated to be recognized as following: 82% in year 2024 and the rest in year 2025-2026. |
Schedule of Long-Lived Assets | December 31 2022 2021 Israel 3,911 3,747 United States 5,938 2,996 Other 2,095 350 11,944 7,093 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) - ₪ / shares | Dec. 31, 2022 | Dec. 31, 2021 | May 23, 2021 | Nov. 11, 2020 | Jun. 30, 2019 |
Business Description [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 ₪ / shares | Dec. 31, 2021 ₪ / shares | May 23, 2021 ₪ / shares | Nov. 11, 2020 ₪ / shares | Jun. 30, 2019 ₪ / shares | |
Accounting Policies [Line Items] | |||||||||
Advertising expenses | $ 10,000 | $ 4,000 | $ 5,000 | ||||||
Common Stock, Par or Stated Value Per Share | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 | ||||
Amounts of severance payment expenses | $ 431 | $ 405 | $ 329 | ||||||
Forecast [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Amounts of severance payment expenses | $ 452 | ||||||||
Minimum [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Short Term Deposits Annual Interest Rate | 0.50% | 0.52% | |||||||
Maximum [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Short Term Deposits Annual Interest Rate | 5.73% | 0.87% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Balance at beginning of year | $ 1,248 | $ 705 | $ 472 |
Cost incurred | (2,099) | (1,453) | (1,127) |
Expense recognized | 2,269 | 1,996 | 1,360 |
Balance at end of year | $ 1,418 | $ 1,248 | $ 705 |
MARKETABLE SECURITIES AND FAI_3
MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Marketable securities | $ 374,589 | $ 294,530 |
Non Us Government Agencies Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities | $ 1,502 | $ 4,039 |
MARKETABLE SECURITIES AND FAI_4
MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Schedule Of Marketable Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Marketable Securities [Line Items] | |||
Marketable securities | $ 374,589 | $ 294,530 | |
Government bonds [Member] | |||
Marketable Securities [Line Items] | |||
Marketable securities | [1] | 339,684 | 264,265 |
Municipal bonds [Member] | |||
Marketable Securities [Line Items] | |||
Marketable securities | 2,551 | 2,925 | |
Corporate debt securities [Member] | |||
Marketable Securities [Line Items] | |||
Marketable securities | 21,252 | 19,913 | |
Commercial Paper [Member] | |||
Marketable Securities [Line Items] | |||
Marketable securities | 4,195 | 0 | |
Certificates of deposit [Member] | |||
Marketable Securities [Line Items] | |||
Marketable securities | $ 6,907 | $ 7,427 | |
[1]As of December 31, 2022 and 2021, consists of $1,502 and $4,039 non-U.S. government bonds, respectively. |
MARKETABLE SECURITIES AND FAI_5
MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Schedule of Financial Assets Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Cost or amortized cost | $ 384,320 | $ 296,243 |
Level 2 Securities [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 374,589 | 294,530 |
Cost or amortized cost | 384,320 | 296,243 |
Gross unrealized holding loss | (9,745) | (1,793) |
Gross unrealized holding gains | 14 | 80 |
Level 2 Securities [Member] | Government bonds [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 339,684 | 264,265 |
Cost or amortized cost | 348,687 | 265,829 |
Gross unrealized holding loss | (9,003) | (1,635) |
Gross unrealized holding gains | 0 | 71 |
Level 2 Securities [Member] | Municipal bonds [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 2,551 | 2,925 |
Cost or amortized cost | 2,674 | 2,951 |
Gross unrealized holding loss | (123) | (26) |
Gross unrealized holding gains | 0 | |
Level 2 Securities [Member] | Corporate debt securities [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 21,252 | 19,913 |
Cost or amortized cost | 21,850 | 20,041 |
Gross unrealized holding loss | (612) | (131) |
Gross unrealized holding gains | 14 | 3 |
Level 2 Securities [Member] | Commercial Paper [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 4,195 | |
Cost or amortized cost | 4,195 | |
Gross unrealized holding loss | 0 | |
Gross unrealized holding gains | 0 | |
Level 2 Securities [Member] | Certificates of deposit [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 6,907 | 7,427 |
Cost or amortized cost | 6,914 | 7,422 |
Gross unrealized holding loss | (7) | (1) |
Gross unrealized holding gains | $ 0 | $ 6 |
MARKETABLE SECURITIES AND FAI_6
MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS (Schedule of Debt Securities on Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities and Fair Value Measurement [Abstract] | ||
Due within one year | $ 243,094 | $ 61,120 |
1 to 2 years | 124,037 | 141,034 |
2 to 3 years | 7,458 | 92,376 |
Total | $ 374,589 | $ 294,530 |
ACCOUNTS RECEIVABLE (Schedule o
ACCOUNTS RECEIVABLE (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Trade | $ 29,859 | $ 19,809 |
Notes receivable | 2,429 | 2,302 |
Less - allowance for credit losses | (1,318) | (1,107) |
Notes And Loans Receivable Net | 30,970 | 21,004 |
Less - non-current accounts receivable | (3,973) | (768) |
Total current accounts receivable | $ 26,997 | $ 20,236 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT RECIVABLES (Schedule of Prepaid expenses and other current receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Receivables, Net, Current [Abstract] | ||
Advances to suppliers | $ 11,898 | $ 7,201 |
Prepaid expenses | 1,928 | 1,203 |
Government institutions | 879 | 641 |
Income tax | 44 | 3,303 |
Other | 345 | 590 |
Total other current receivables | $ 15,094 | $ 12,938 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 13,686 | $ 3,842 |
Finished products | 26,211 | 17,184 |
Total inventories | $ 39,897 | $ 21,026 |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 5,132 | $ 3,558 | |
Less: accumulated depreciation | (2,834) | (2,154) | |
Total property and equipment, net | 2,298 | 1,404 | |
Depreciation and amortization | 680 | 517 | $ 416 |
Computers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,191 | 956 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 562 | 304 | |
Molds [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 2,550 | 1,729 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 829 | $ 569 |
OTHER INVESTMENTS (Narrative) (
OTHER INVESTMENTS (Narrative) (Details) - Medimor [Member] - USD ($) $ in Thousands | Jul. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 |
Net Investment Income [Line Items] | |||
Investment Amount | $ 600 | ||
Ordinary shares | 955,479 | 414,384 | 1,369,863 |
Ownership interest | 14.78% | ||
Fully diluted basis [Member] | |||
Net Investment Income [Line Items] | |||
Ownership interest | 10.34% |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) ₪ in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2018 USD ($) | May 31, 2018 ILS (₪) | Dec. 31, 2022 USD ($) | |
Lease expires | December 2024 | ||
Bank guarantee | $ 190,000 | ₪ 667 | |
Current monthly rent payment | $ 45,200 | ||
Subsidiaries Three [Member] | |||
Lease expires | August 2022 | ||
Current monthly rent payment | $ 26,000 | ||
Subsidiaries Four [Member] | |||
Current monthly rent payment | $ 16,600 |
LEASES (Schedule of Lease Expen
LEASES (Schedule of Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,628 | $ 1,297 |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 1,881 | $ 1,328 |
LEASES (Schedule of Supplemen_2
LEASES (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Operating lease right-of-use assets | $ 5,073 | $ 4,321 |
Other current liabilities | 1,453 | 1,209 |
Operating lease liabilities | 3,509 | 3,307 |
Total operating lease liabilities | $ 4,962 | $ 4,516 |
Weighted Average Remaining Lease Term, Operating leases | 4 years 3 months 18 days | 4 years 8 months 12 days |
Minimum [Member] | ||
Operating Leases | ||
Weighted Average Discount Rate, Operating leases | 2% | 2% |
Maximum [Member] | ||
Operating Leases | ||
Weighted Average Discount Rate, Operating leases | 5.80% | 2.75% |
LEASES (Schedule of Maturities
LEASES (Schedule of Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 1,583 | |
2024 | 1,529 | |
2025 | 666 | |
2026 and beyond | 1,495 | |
Total lease payments | 5,273 | |
Less imputed interests | (311) | |
Total operating lease liabilities | $ 4,962 | $ 4,516 |
OTHER CURRENT LIABILITIES (Sche
OTHER CURRENT LIABILITIES (Schedule Of Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Current Liabilities [Line Items] | ||
Employees and related expenses | $ 19,439 | $ 17,807 |
Government institutions | 4,052 | 3,178 |
Income tax payable | 19,241 | 1,239 |
Warranty reserve | 1,418 | 1,248 |
Other current liabilities | 1,453 | 1,209 |
Other | 6,377 | 4,585 |
Total other current liabilities | $ 51,980 | $ 29,266 |
COMMITMENTS AND CONTINGECIES (D
COMMITMENTS AND CONTINGECIES (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Supply and open orders commitment | $ 46,316 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) ₪ / shares in Units, $ / shares in Units, ₪ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
Nov. 11, 2020 ₪ / shares $ / shares shares | Mar. 15, 2020 USD ($) $ / shares shares | Jan. 07, 2020 $ / shares shares | Nov. 30, 2020 USD ($) shares | Sep. 30, 2020 shares | Feb. 17, 2020 $ / shares | Jan. 28, 2020 $ / shares shares | Nov. 25, 2019 $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2022 ₪ / shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 ₪ / shares shares | May 23, 2021 ₪ / shares | Apr. 23, 2021 shares | Jun. 30, 2019 ILS (₪) ₪ / shares shares | Dec. 31, 2016 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Ordinary shares, par value | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 | ₪ 0.01 | |||||||||||||||
Exercise prices | $ / shares | ₪ 21.615 | |||||||||||||||||||
Stock split | 1-for-2 share split | |||||||||||||||||||
Shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||||||
Shares authorized amount | ₪ | ₪ 1,000,000 | |||||||||||||||||||
Stock options granted | 13,000 | |||||||||||||||||||
Repurchase of ordinary shares | $ | $ 42,600 | $ 35,400 | $ 17,200 | |||||||||||||||||
Repurchase of ordinary shares, shares | 1,077,213 | 693,734 | 786,882 | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Unvested options | 287,499 | |||||||||||||||||||
Unrecognized compensation expense | $ | $ 13,907 | |||||||||||||||||||
Unrecognized compensation cost, recognition period | 11 months 26 days | |||||||||||||||||||
Aggregate intrinsic value | $ | $ 18,460 | |||||||||||||||||||
Fair value of RSU granted, per share | $ / shares | $ 30,817 | $ 19,279 | ||||||||||||||||||
Unvested RSUs | 0 | 804,575 | [1] | 508,080 | [1] | |||||||||||||||
Number of RSUs vested | 517,076 | |||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Fair value of RSU granted, per share | $ / shares | 50.37 | 34.87 | ||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Fair value of RSU granted, per share | $ / shares | 25.11 | 40.6 | ||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Fair value of RSU granted, per share | $ / shares | 27.77 | $ 54.61 | ||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Share Based Compensation Award Tranche Four [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Fair value of RSU granted, per share | $ / shares | $ 33.39 | |||||||||||||||||||
GIBF and JVC [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Ordinary shares | 124,914 | |||||||||||||||||||
Purchase consideration | $ | $ 2,700 | |||||||||||||||||||
Joint Venture Agreement [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Ownership interest | 51% | |||||||||||||||||||
Invasix UK [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Ordinary shares | 457,912 | |||||||||||||||||||
Invasix UK [Member] | Dilazar Limited [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Ownership interest | 49% | |||||||||||||||||||
Board of Director [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Exercise prices | $ / shares | $ 9.845 | $ 17.52 | $ 21.98 | $ 21.95 | $ 20.775 | |||||||||||||||
Stock options granted | 2,518,300 | 1,906,000 | 85,000 | 224,500 | ||||||||||||||||
Stock options cancelled | 2,518,300 | |||||||||||||||||||
2018 Incentive Plan [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Issuance of shares | 800,000 | |||||||||||||||||||
Number of options available for grant | 1,756,231 | |||||||||||||||||||
Aggregate intrinsic value | $ | $ 77,537 | |||||||||||||||||||
2018 Incentive Plan [Member] | Employees [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Weighted average remaining contractual life | 2 years 11 months 12 days | |||||||||||||||||||
Total intrinsic value of options exercised | $ | $ 10,549 | $ 277,978 | $ 190,498 | |||||||||||||||||
Fair value of options granted | $ | $ 16,345 | |||||||||||||||||||
Unvested options | 3,166 | |||||||||||||||||||
Unrecognized compensation expense | $ | $ 11 | |||||||||||||||||||
Unrecognized compensation cost, recognition period | 3 months | |||||||||||||||||||
Non Israeli Plan [Member] | Board of Director [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Exercise prices | $ / shares | $ 9.845 | 21.98 | $ 20.775 | |||||||||||||||||
Stock options granted | 449,000 | 30,000 | ||||||||||||||||||
Fair value of options granted | $ | $ 3,283 | |||||||||||||||||||
Vested options | $ | $ 666 | |||||||||||||||||||
Share Repurchase Program [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Repurchase of ordinary shares | $ | $ 95,200 | |||||||||||||||||||
Repurchase of ordinary shares, shares | 2,557,829 | |||||||||||||||||||
IPO [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Repurchase of ordinary shares, shares | 2 | |||||||||||||||||||
Minimum [Member] | Board of Director [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Exercise prices | $ / shares | $ 9.845 | $ 9.845 | ||||||||||||||||||
[1]As of December 31, 2022, 517,076 RSUs were vested and were settled by issuance of respective shares at the beginning of January 2023. |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Awards Authorized to be Issued) (Details) - 2018 Incentive Plan [Member] | Dec. 31, 2022 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Upon adoption of the 2018 Incentive Plan | 3,578,000 | [1] |
Automatic increase approved by the Board of the Company in: | ||
January 2020 | 1,600,000 | [1] |
January 2021 | 1,600,000 | [1] |
January 2022 | 800,000 | |
January 2023 | 800,000 | |
Total | 8,378,000 | |
[1]The number of awards has been adjusted retroactively to reflect the 2021 Share Split. |
SHAREHOLDERS' EQUITY (Schedul_2
SHAREHOLDERS' EQUITY (Schedule Of Grant of Options) (Details) - Employees, officers, directors, service providers and consultants [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
February 9 , 2022 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Award amount | $ 598,455 | |
Exercise price range | $ 0 | |
February 9 , 2022 [Member] | Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting period | 1 year | |
February 9 , 2022 [Member] | Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting period | 2 years | |
May 1, 2022 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Award amount | $ 21,500 | |
Exercise price range | $ 0 | |
May 1, 2022 [Member] | Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting period | 1 year | |
May 1, 2022 [Member] | Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting period | 2 years | |
July 27, 2022 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Award amount | $ 3,000 | |
Exercise price range | $ 0 | |
Vesting period | 1 year 6 months | |
October 26, 2022 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Award amount | $ 1,500 | |
Exercise price range | $ 0 | |
Vesting period | 1 year 3 months | |
February 9, 2021 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Award amount | $ 511,500 | |
Exercise price range | $ 0 | |
February 9, 2021 [Member] | Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting period | 1 year | |
February 9, 2021 [Member] | Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting period | 2 years | |
May 6, 2021 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Award amount | $ 23,500 | |
Exercise price range | $ 0 | |
Vesting period | 2 years | |
July 27, 2021 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Award amount | $ 9,000 | |
Exercise price range | $ 0 | |
Vesting period | 1 year 6 months |
SHAREHOLDERS' EQUITY (Schedul_3
SHAREHOLDERS' EQUITY (Schedule Of Options Granted) (Details) - $ / shares | 12 Months Ended | |||
Nov. 11, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Changes during the year: | ||||
Granted | 13,000 | |||
Employees, officers and directors [Member] | ||||
Number of options | ||||
Outstanding at beginning of year | 2,930,727 | 10,492,910 | ||
Changes during the year: | ||||
Granted | 0 | 0 | ||
Cancelled | 0 | 0 | ||
Exercised | (365,799) | (7,521,469) | ||
Forfeited | (5,788) | (40,714) | ||
Expired | (5,500) | 0 | ||
Outstanding at end of year | 2,553,640 | 2,930,727 | ||
Exercisable at end of year | 2,550,474 | 2,635,973 | ||
Weighted average exercise price | ||||
Outstanding at beginning of year | [1] | $ 5.23 | $ 3.43 | |
Weighted Average Exercise Price Changes During Year Abstract | ||||
Granted | [1] | 0 | 0 | |
Cancelled | [1] | 0 | 0 | |
Exercised | [1] | 4.52 | 2.7 | |
Forfeited | [1] | 10.78 | 9 | |
Expired | [1] | 10.9 | 0 | |
Outstanding at end of year | [1] | 5.3 | 5.23 | |
Exercisable at end of year | [1] | $ 5.3 | $ 4.71 | |
[1]In U.S. dollars per Ordinary Share |
SHAREHOLDERS' EQUITY (Schedul_4
SHAREHOLDERS' EQUITY (Schedule of Assumptions Used to Calculate Fair Value of Options Granted) (Details) - Employees, officers and directors [Member] | 12 Months Ended |
Dec. 31, 2020 $ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Dividend yield | 0% |
Minimum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Fair value of one ordinary share | $ 9.845 |
Expected volatility | 46.07% |
Risk-free interest rate | 0.53% |
Early exercise multiple (“EEM”) | 0% |
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 | $ 21.98 |
Expected volatility | 49.22% |
Risk-free interest rate | 1.74% |
Early exercise multiple (“EEM”) | 250% |
Contractual term | 7 years |
SHAREHOLDERS' EQUITY (Schedul_5
SHAREHOLDERS' EQUITY (Schedule Of Outstanding and Exercisable Options) (Details) - $ / shares | 12 Months Ended | ||
Nov. 11, 2020 | Dec. 31, 2022 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise prices | $ 21.615 | ||
$0.28 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise prices | [1] | $ 0.28 | |
Number of options outstanding at end of year | 641,166 | ||
Weighted average remaining contractual life of outstanding options | 1 year 4 months 9 days | ||
Number of options exercisable at end of year | 641,166 | ||
Weighted average remaining contractual life of exercisable options | 1 year 4 months 9 days | ||
$0.29 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise prices | [1] | $ 0.29 | |
Number of options outstanding at end of year | 203,438 | ||
Weighted average remaining contractual life of outstanding options | 1 year 5 months 1 day | ||
Number of options exercisable at end of year | 203,438 | ||
Weighted average remaining contractual life of exercisable options | 1 year 5 months 1 day | ||
$3.16 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise prices | [1] | $ 3.16 | |
Number of options outstanding at end of year | 211,782 | ||
Weighted average remaining contractual life of outstanding options | 2 years 8 months 15 days | ||
Number of options exercisable at end of year | 211,782 | ||
Weighted average remaining contractual life of exercisable options | 2 years 8 months 15 days | ||
$3.75 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise prices | [1] | $ 3.75 | |
Number of options outstanding at end of year | 272,741 | ||
Weighted average remaining contractual life of outstanding options | 3 years 7 days | ||
Number of options exercisable at end of year | 272,741 | ||
Weighted average remaining contractual life of exercisable options | 3 years 7 days | ||
$5.11 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise prices | [1] | $ 5.11 | |
Number of options outstanding at end of year | 99,360 | ||
Weighted average remaining contractual life of outstanding options | 3 years 3 months 3 days | ||
Number of options exercisable at end of year | 99,360 | ||
Weighted average remaining contractual life of exercisable options | 3 years 3 months 3 days | ||
$7.00 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise prices | [1] | $ 7 | |
Number of options outstanding at end of year | 42,000 | ||
Weighted average remaining contractual life of outstanding options | 3 years 7 months 9 days | ||
Number of options exercisable at end of year | 42,000 | ||
Weighted average remaining contractual life of exercisable options | 3 years 7 months 9 days | ||
$9.85 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise prices | [1] | $ 9.85 | |
Number of options outstanding at end of year | 1,044,265 | ||
Weighted average remaining contractual life of outstanding options | 4 years 1 month 28 days | ||
Number of options exercisable at end of year | 1,041,099 | ||
Weighted average remaining contractual life of exercisable options | 4 years 1 month 28 days | ||
$12.16 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise prices | [1] | $ 12.16 | |
Number of options outstanding at end of year | 32,388 | ||
Weighted average remaining contractual life of outstanding options | 4 years 4 months 6 days | ||
Number of options exercisable at end of year | 32,388 | ||
Weighted average remaining contractual life of exercisable options | 4 years 4 months 6 days | ||
$21.62 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise prices | [1] | $ 21.62 | |
Number of options outstanding at end of year | 6,500 | ||
Weighted average remaining contractual life of outstanding options | 4 years 10 months 9 days | ||
Number of options exercisable at end of year | 6,500 | ||
Weighted average remaining contractual life of exercisable options | 4 years 10 months 9 days | ||
[1]In U.S. dollars per Ordinary Share |
SHAREHOLDERS' EQUITY (Schedul_6
SHAREHOLDERS' EQUITY (Schedule of Options Granted Resticted Share Unit) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Number of RSUs | ||||
Outstanding at beginning of year | 508,080 | [1] | 0 | |
Changes during the year: | ||||
Granted | 624,455 | 544,000 | ||
Exercised | (278,290) | |||
Forfeited | (49,670) | (35,920) | ||
Outstanding at end of year | [1] | 804,575 | 508,080 | |
Weighted Average Grant Date Fair Value | ||||
Outstanding at beginning of year | $ 35.48 | [1] | $ 0 | |
Changes during the year: | ||||
Granted | 49.35 | 35.44 | ||
Exercised | 34.98 | 0 | ||
Forfeited | 46.43 | 34.87 | ||
Outstanding at end of year | [1] | $ 45.74 | $ 35.48 | |
[1]As of December 31, 2022, 517,076 RSUs were vested and were settled by issuance of respective shares at the beginning of January 2023. |
SHAREHOLDERS' EQUITY (Schedul_7
SHAREHOLDERS' EQUITY (Schedule Of Share Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Equity-based compensation income | $ 24,452 | $ 11,962 | $ 12,845 |
Cost of Sales [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Equity-based compensation income | 1,917 | 1,108 | 520 |
Research and Development Expenses [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Equity-based compensation income | 3,166 | 1,554 | 2,264 |
Selling and Marketing Expenses [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Equity-based compensation income | 17,302 | 8,274 | 9,398 |
General and Administrative Expenses [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Equity-based compensation income | $ 2,067 | $ 1,026 | $ 663 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) $ in Thousands, ₪ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 | Dec. 31, 2021 ILS (₪) | Nov. 15, 2021 USD ($) | Nov. 15, 2021 ILS (₪) | Mar. 31, 2020 USD ($) | |
Income Tax Contingency [Line Items] | |||||||
Statutory rate | 23% | 23% | 23% | ||||
Tax asset | $ 2,894 | ||||||
Accumulated tax loss carryforward | $ 221,000 | ||||||
One Time Payment | $ 12,000 | ||||||
Undistributed exempt income | $ 147,500 | 165,700 | |||||
Payment of income tax assessment with tax authorities | $ 1,300 | ||||||
Amendment Advantage Exemption [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
One Time Payment | $ 9,000 | ||||||
NIS [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
One Time Payment | ₪ | ₪ 42.5 | ||||||
Undistributed exempt income | ₪ | ₪ 517.8 | 591 | |||||
NIS [Member] | Amendment Advantage Exemption [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
One Time Payment | ₪ | ₪ 32 | ||||||
Israeli Tax Authority [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Undistributed exempt income | $ 14,300 | ||||||
Israeli Tax Authority [Member] | NIS [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Undistributed exempt income | ₪ | ₪ 50.2 | ||||||
Regulations [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Corporate tax | 7.50% |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Assets (liabilities)) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets in respect of: | ||
Subsidiaries carryforward losses | $ 60,229 | $ 58,389 |
Other temporary differences | 2,369 | 2,874 |
Share-based compensation | 5,073 | 2,884 |
Deferred tax asset in respect to other comprehensive loss | 2,238 | 394 |
Total deferred tax assets before valuation allowance | 69,909 | 64,541 |
Valuation allowance | (66,815) | (63,207) |
Total deferred tax assets | $ 3,094 | $ 1,334 |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliation of Theoretical Provision For Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income before taxes on income | $ 201,466 | $ 168,002 | $ 76,132 |
Theoretical tax expenses at the statutory rate of InMode | 23% | 23% | 23% |
Theoretical tax benefit | $ 46,337 | $ 38,640 | $ 17,510 |
Increase (decrease) in taxes on income due to: | |||
Benefits to the Benefited Enterprise | (29,429) | (37,478) | (16,652) |
Different effective tax rates applicable to the Subsidiaries | (1,453) | (2,033) | 235 |
NOL carry back as part of the CARES Act relief | 0 | 0 | (2,894) |
Valuation allowance | 130 | 40 | 17 |
Uncertain tax position | 303 | 1,921 | 1,416 |
Non-deductible expenses and other permanent differences, mainly share based compensation expenses | 1,842 | 1,838 | 1,426 |
Previous year | 0 | 0 | 49 |
Amendment to the Investments Law payment - see also note 14a(2)(b) | 12,017 | 0 | 0 |
settlements with the Israeli tax authority net of decrease of related uncertain tax | 10,199 | 0 | 0 |
Total taxes on income | $ 39,946 | $ 2,928 | $ 1,107 |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Note [Line Items] | |||
Income before taxes on income | $ 201,466 | $ 168,002 | $ 76,132 |
InMode Ltd. and Isreaeli subsidiaries [Member] | |||
Income Tax Note [Line Items] | |||
Income before taxes on income | 196,354 | 163,370 | 72,712 |
Subsidiaries outside of Israel [Member] | |||
Income Tax Note [Line Items] | |||
Income before taxes on income | $ 5,112 | $ 4,632 | $ 3,420 |
INCOME TAXES (Schedule of Tax E
INCOME TAXES (Schedule of Tax Expenses (Tax Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Note [Line Items] | |||
Current | $ 39,862 | $ 3,698 | $ (622) |
Deferred | 84 | (770) | 1,729 |
INCOME TAXES | 39,946 | 2,928 | 1,107 |
Israel [Member] | |||
Income Tax Note [Line Items] | |||
Current | 38,248 | 3,829 | 1,411 |
Deferred | 84 | (770) | 30 |
Subsidiaries outside Israel [Member] | |||
Income Tax Note [Line Items] | |||
Current | 1,614 | (131) | (2,033) |
Deferred | $ 0 | $ 0 | $ 1,699 |
INCOME TAXES (Schedule of Unrec
INCOME TAXES (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Balance at January 1 | $ 4,831 | $ 2,910 |
Decrease in uncertain tax positions for the previous years | (4,831) | (804) |
Increase in uncertain tax positions for the current year, net | 303 | 2,725 |
Balance at December 31 | $ 303 | $ 4,831 |
ENTITY-WIDE DISCLOSURE (Narrati
ENTITY-WIDE DISCLOSURE (Narrative) (Details) | Dec. 31, 2022 |
Segment Reporting, Revenue Reconciling Item [Line Items] | |
Percentage of non- current deferred revenue | 82% |
ENTITY-WIDE DISCLOSURE (Schedul
ENTITY-WIDE DISCLOSURE (Schedule Of Net Sales By Geographical Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
REVENUES | $ 454,271 | $ 357,565 | $ 206,107 |
United States [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
REVENUES | 298,612 | 237,263 | 149,488 |
Europe [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
REVENUES | 49,274 | 36,588 | 15,881 |
Other Country [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
REVENUES | $ 106,385 | $ 83,714 | $ 40,738 |
ENTITY-WIDE DISCLOSURE (Sched_2
ENTITY-WIDE DISCLOSURE (Schedule of Net Sales by Techonology) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Percentage of net sales based on products technology | 100% | 100% | 100% |
Minimal-Invasive [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of net sales based on products technology | 81% | 72% | 62% |
Hands-Free [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of net sales based on products technology | 10% | 20% | 32% |
Non-Invasive [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of net sales based on products technology | 9% | 8% | 6% |
ENTITY-WIDE DISCLOSURE (Sched_3
ENTITY-WIDE DISCLOSURE (Schedule Of Changes In Contract Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting [Abstract] | |||
Balance as of January 1 | $ 16,556 | $ 13,888 | |
Increases due to issuance of new contracts, excluding amounts recognized as revenue during the period | 14,987 | 14,527 | |
Revenue recognized that was included in the contract liability balance at the beginning of the period | (13,786) | (11,859) | |
Balance as of December 31 | 17,757 | 16,556 | |
Contract liability presented in non-current liabilities | [1] | 3,959 | 2,751 |
Contract liabilities | $ 13,798 | $ 13,805 | |
[1]As of December 31, 2022, noncurrent deferred revenue is estimated to be recognized as following: 83% in year 2024 and the rest in year 2025-2026. |
ENTITY-WIDE DISCLOSURE (Sched_4
ENTITY-WIDE DISCLOSURE (Schedule Of Long-Lived Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total sales | $ 11,944 | $ 7,093 |
Israel [Member] | ||
Segment Reporting Information [Line Items] | ||
Total sales | 3,911 | 3,747 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total sales | 5,938 | 2,996 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total sales | $ 2,095 | $ 350 |
RELATED PARTIES (Narrative) (De
RELATED PARTIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Home Skinnovations Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Payment for services received | $ 332 | $ 239 | $ 82 |
Related party consideration for aggregate amount | 497 | ||
Subsidiary of Home Skinnovations Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Payment for services received | 123 | 433 | 379 |
Spa Medical International Lsrl [Member] | |||
Related Party Transaction [Line Items] | |||
Payment for services received | 723 | 172 | 307 |
Himalaya Family Office Consulting Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Payment for services received | $ 100 | $ 90 | $ 94 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - 1 months ended Jan. 31, 2023 ₪ in Millions, $ in Millions | USD ($) | ILS (₪) |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Amount paid to undistributed exempt income | $ 14.3 | ₪ 50.2 |