0001213900-22-016155 | 20-F | XBRL Viewer

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Statements of Shareholders' Equity (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Net of issuance costs	$ 760	$ 739	$ 669

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands					1 Months Ended			12 Months Ended
	Sep. 14, 2020	Jun. 18, 2019	Jan. 10, 2017	May 01, 2016	Nov. 19, 2021	Jan. 31, 2021	Sep. 16, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shareholders' Equity (Details) [Line Items]
Net proceeds from offering								$ 339,760	$ 161,981	$ 129,710
Unrecognized compensation expense								$ 1,685
Weighted average vesting period								1 year 9 months 25 days
Weighted average fair value of options granted (in Dollars per share)								$ 64.93	$ 31.55	$ 14.51
Total intrinsic value of options exercised								$ 27,181	$ 12,698	$ 6,742
Risk-free rate								0.40%
Volatility rate								52.00%
Dividend yield								0.00%
Expected term								5 years 3 months 25 days
Recognized reduction revenues								$ 25,423	$ 5,366	$ 5,094
Total unrecognized amount to be recognized as reduction in revenues								$ 83,675
Master Purchase Agreement [Member]
Shareholders' Equity (Details) [Line Items]
Warrants to purchase ordinary shares (in Shares)	3,401,028		2,932,176
Exercise price (in Dollars per share)	$ 59.26		$ 13.04
Payments for purchased products and services	$ 400,000		$ 150,000	$ 5,000		$ 5,000
Class of warrant exercisable (in Shares)							2,162,463
Cashless sale (in Shares)							1,689,942
Exercised warrants (in Shares)					769,713
Shares received upon that exercise (in Shares)					705,701
Warrants exercisable (in Shares)								660,773
Restricted Stock Units (RSUs) [Member]
Shareholders' Equity (Details) [Line Items]
Ordinary shares sold (in Shares)								705,953
Options exercisable, description								The terms of option grants generally provide that 25% of total options are exercisable one year after the grant or vesting start date determined for each optionee and a further 6.25% is exercisable at the end of each subsequent three-month period over the following 3 years. Options are exercisable for up to 10 years from the grant date. Options that are cancelled or forfeited before expiration become available for future grants.
Unrecognized compensation expense								$ 39,465
Weighted average fair value of options granted (in Dollars per share)								$ 115.65	$ 40.93	$ 28.5
Weighted average fair value of shares vested (in Dollars per share)								$ 31.63	$ 24.52	$ 19.53
Weighted average vesting period								2 years 9 months 7 days
Phantom Share Units (PSUs) [Member]
Shareholders' Equity (Details) [Line Items]
Fair value of options vested								$ 10,608
Board of Directors Chairman [Member]
Shareholders' Equity (Details) [Line Items]
Increase in the ordinary shares reserved for issuance (in Shares)								1,488,107
Ordinary shares available for future grant (in Shares)								5,587,786
IPO [Member]
Shareholders' Equity (Details) [Line Items]
Ordinary shares sold (in Shares)		4,991,000
Net proceeds from offering		$ 129,710
Secondary offering [Member]
Shareholders' Equity (Details) [Line Items]
Ordinary shares sold (in Shares)					2,336,892		2,999,999
Net proceeds from offering					$ 339,760		$ 161,981

Taxes on Income (Details) - Schedule of income (loss) before income tax - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of income (loss) before income tax [Abstract]
Domestic	$ 10,334	$ (6,926)	$ 7,343
Foreign	5,058	3,695	3,568
Income (loss) before income taxes	$ 15,392	$ (3,231)	$ 10,911

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Statements of Shareholders' Equity - USD ($) $ in Thousands	Ordinary shares	Additional paid in capital	Accumulated other comprehensive income (loss)	Retained earnings	Total
Balance at Dec. 31, 2018	$ 89	$ 156,714	$ (238)	$ 22,571	$ 179,136
Balance (in Shares) at Dec. 31, 2018	35,065,200
Issuance of ordinary shares in a secondary offering, net of issuance costs	$ 14	130,296			130,310
Issuance of ordinary shares in a secondary offering, net of issuance costs (in Shares)	4,991,000
Exercise of options and vesting of restricted stock units	$ 2	5,899			5,901
Exercise of options and vesting of restricted stock units (in Shares)	628,140
Share-based compensation		6,614			6,614
Warrants to customers		5,094			5,094
Other comprehensive income/loss			1,081		1,081
Net income				10,167	10,167
Balance at Dec. 31, 2019	$ 105	304,617	843	32,738	338,303
Balance (in Shares) at Dec. 31, 2019	40,684,340
Issuance of ordinary shares in a secondary offering, net of issuance costs	$ 14	162,531			162,545
Issuance of ordinary shares in a secondary offering, net of issuance costs (in Shares)	4,689,941
Exercise of options and vesting of restricted stock units	$ 2	5,658			5,660
Exercise of options and vesting of restricted stock units (in Shares)	614,332
Share-based compensation		10,036			10,036
Warrants to customers		5,366			5,366
Other comprehensive income/loss			1,890		1,890
Net income				(4,783)	(4,783)
Balance at Dec. 31, 2020	$ 121	488,208	2,733	27,955	519,017
Balance (in Shares) at Dec. 31, 2020	45,988,613
Issuance of ordinary shares in a secondary offering, net of issuance costs	$ 10	341,755			341,765
Issuance of ordinary shares in a secondary offering, net of issuance costs (in Shares)	3,042,845
Exercise of options and vesting of restricted stock units	$ 2	4,848			4,850
Exercise of options and vesting of restricted stock units (in Shares)	588,324
Share-based compensation		15,133			15,133
Warrants to customers		25,423			25,423
Other comprehensive income/loss			(2,162)		(2,162)
Net income				15,527	15,527
Balance at Dec. 31, 2021	$ 133	$ 875,367	$ 571	$ 43,482	$ 919,553
Balance (in Shares) at Dec. 31, 2021	49,619,782

Taxes on Income (Details) - Schedule of taxes on income (tax benefits), domestic and foreign - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Domestic taxes:
Current taxes	$ (1,171)	$ 16	$ (208)
Deferred taxes	1,493	1,344	(129)
Domestic taxes, total	322	1,360	(337)
Foreign taxes:
Current taxes	621	194	885
Deferred taxes	(1,078)	(2)	196
Foreign taxes, total	(457)	192	1,081
Taxes on income	$ (135)	$ 1,552	$ 744

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Subsequent Event

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

SUBSEQUENT EVENT

NOTE 18:-

SUBSEQUENT EVENT

In January 2022, the Company announced that it has entered into a definitive agreement to acquire Lichtenau, Germany-based Tesoma. Tesoma is recognized for its high-quality engineering and the performance of its textile curing solutions. The acquisition is expected to be completed on or before April 1, 2022, following the satisfactory completion of business transition and integration plans.

Significant Accounting Policies (Details) - Schedule of notional amounts of outstanding derivative positions - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Schedule of notional amounts of outstanding derivative positions [Abstract]
Cash flow hedge	$ 12,303

Shareholders' Equity (Details) - Schedule of RSU’s activity - RSUs [Member]	12 Months Ended
	Dec. 31, 2021 shares
Shareholders' Equity (Details) - Schedule of RSU’s activity [Line Items]
Unvested at beginning of year	834,321
Granted	274,800
Vested	(334,016)
Forfeited	(90,439)
Unvested at the end of the year	684,666

Taxes on Income (Details) - Schedule of unrecognized tax benefits - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Schedule of unrecognized tax benefits [Abstract]

Beginning of year

$ 4,357

^[1]

$ 3,039

613

1,318

(1,286)

Reductions for tax positions of prior years

(2,650)

Balance at December 31

^[1]

$ 1,034

$ 4,357

[1]	As of December 31, 2021, and 2020 unrecognized tax benefit in an amount of $788 and $4,357, respectively, was presented as a reduction from deferred taxes.

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

Schedule of purchase price allocation

	Fair value		Amortization period (years)
Tangible assets
Inventory	$	3,353

Intangible assets:
Customer relationships *)		890		5.9
Goodwill		471		Infinite

Total purchase price	$	4,715

	Fair value			Amortization period (years)
Tangible assets (liabilities):
Cash	$	1,349
Account receivables and other receivables		761
Property and equipment		53
Trade payables and other payables		(1,054	)
Deferred tax liabilities, net		(952	)

Intangible assets:
Technology		5,116			8
Non-competition		709			3
Goodwill		10,902			Infinite

Total purchase price	$	16,884

	Fair value		Amortization period (years)

Tangible assets, net	$	1,448

Intangible assets:
Technology - materials		1,795		6.5
Technology - systems		1,767		8.5
License		1,000		8.5
Goodwill		8,981		Infinite

Total purchase price	$	14,991

Geographic Information (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Schedule of long-lived assets by geographic region

	December 31,
	2021		2020

U.S	$	6,433	$	2,835
Israel		61,339		45,835
EMEA		1,787		1,142
Asia Pacific		642		496

	$	70,201	$	51,008

Schedule of major customers’ data as a percentage

	Year ended December 31,
	2021			2020			2019

Customer A		27	%		11	%		12	%
Customer B		12	%		11	%		6	%

Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Total borrowings	$ 1,100
Interest rate, description	This line of credit is unsecured and available subject to (i) the Company’s maintenance of a 30% ratio of total tangible shareholders’ equity to total tangible assets, and (ii) the total credit use being less than 70% of the Company’s and its subsidiaries’ receivables. Interest rates across this credit line varied from 0.3% to 2.3% as of December 31, 2021.
Purchase commitments	$ 63,561
Royalties percentage	2.50%
Maximum annual amount	$ 625
Royalty expense	$ 625	$ 625	$ 625
Number of banks	5
Total amount of primarily for its rented facilities	$ 1,907

Taxes on Income (Details) $ in Thousands, ₪ in Millions		12 Months Ended
Taxes on Income (Details) $ in Thousands, ₪ in Millions	Jan. 01, 2017 ILS (₪)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019	Dec. 31, 2017
Taxes on Income (Details) [Line Items]
Israeli corporate income tax rate		23.00%	2021.00%	23.00%
Tax-exempt income (in Dollars)		$ 146,398
Reduced corporate tax rate income (in Dollars)		$ 36,599
Tax rate		20.00%			7.50%
Percentage of corporate tax rate					12.00%
Benefitted intangible assets (in New Shekels) \| ₪	₪ 200
Undistributed earnings of foreign subsidiaries (in Dollars)		$ 18,213
Corporate tax rate (in Dollars)		1,796
Carryforward operating tax losses (in Dollars)		57,025
Unrecognized tax benefit (in Dollars)		$ 788	$ 4,357
Preferred Technology [Member]
Taxes on Income (Details) [Line Items]
Tax rate		7.50%			12.00%
Minimum [Member]
Taxes on Income (Details) [Line Items]
Tax rate		20.00%
Israeli [Member]
Taxes on Income (Details) [Line Items]
Tax rate		16.00%
Israeli [Member] \| Preferred Technology [Member]
Taxes on Income (Details) [Line Items]
Tax rate		12.00%

Selected Statements of Operations Data

12 Months Ended

Dec. 31, 2021

Condensed Financial Statement [Abstract]

SELECTED STATEMENTS OF OPERATIONS DATA

NOTE 16:-

SELECTED STATEMENTS OF OPERATIONS DATA

Financial income, net:

	Year ended December 31,
	2021			2020			2019
Financial income:

Interest on bank deposits and other	$	2,129		$	2,238		$	2,535
Realized gain on sale of marketable securities, net		32			503			271
Interest on marketable securities		3,243			2,870			1,975
Amortization of premium and accretion of discount on marketable securities, net		-			-			112

		5,404			5,611			4,893
Financial expenses:

Bank charges		(286	)		(357	)		(405	)
Exchange rate differences, net		(1,240	)		(1,361	)		(1,175	)
Amortization of premium and accretion of discount on marketable securities, net		(1,279	)		(395	)		-

		(2,805	)		(2,113	)		(1,580	)

Total financial income, net:	$	2,599		$	3,498		$	3,313

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of lease expense

	Year ended December 31,
	2021		2020		2019

Operating lease	$	5,085	$	4,544	$	3,857
Short-term lease		264		34		131

Total lease expense	$	5,085	$	4,578	$	3,988

Schedule of maturities of operating lease liabilities


2022	$	5,704
2023		4,446
2024		4,015
2025		3,271
2026 and after		12,353

Total operating lease payments	$	29,789

Less - imputed interest		2,831

Present value of lease liabilities	$	26,958

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Schedule of share option activity and related information

	Number of shares upon exercise			Weighted average exercise price		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value

Outstanding at beginning of year		686,456		$	18.66		6.87	$	48,375
Granted		5,005			125.25		-		-
Exercised		(254,308	)		19.12		-		27,181
Forfeited		(23,978	)		17.49		-		-

Outstanding at end of year		413,175		$	19.58		5.79	$	54,815

Exercisable at end of year		291,953		$	15.46		5.16	$	39,936

Schedule of RSU’s activity

	Number of RSUs

Unvested at beginning of year		834,321
Granted		274,800
Vested		(334,016	)
Forfeited		(90,439	)

Unvested at the end of the year		684,666

Schedule of share based compensation expense

	Year ended December 31,
	2021		2020		2019

Cost of products	$	1,355	$	1,056	$	632
Cost of services		1,105		771		520
Research and development, net		2,685		1,712		1,294
Sales and marketing		5,004		2,893		1,689
General and administrative		4,984		3,604		2,479

Total share-based compensation expense	$	15,133	$	10,036	$	6,614

Taxes on Income (Details) - Schedule of taxes on income (tax benefits) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of taxes on income (tax benefits) [Abstract]
Current taxes	$ (550)	$ 210	$ 677
Deferred taxes	415	1,342	67
Total	(135)	1,552	744
Domestic	322	1,360	(337)
Foreign	(457)	192	1,081
Total	$ (135)	$ 1,552	$ 744

Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Significant Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2:-

SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).

Use of estimates:

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates.

On an ongoing basis, the Company’s management evaluates estimates, including those related to intangible assets and goodwill, tax assets and liabilities, fair values of stock-based awards, inventory write-offs, warranty provision, allowance for credit loss and provision for rebates and returns. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Financial statements in United States dollars:

Most of the revenues of the Company and its subsidiaries are denominated in U.S. dollars. The U.S. dollars is the primary currency of the economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the U.S. dollars. Accordingly, monetary accounts maintained in currencies other than the dollar are re-measured into U.S. dollars in accordance with Accounting Standards Codification (“ASC”) No. 830 “Foreign Currency Matters”. Changes in currency exchange rates between the Company’s functional currency and the currency in which a transaction is denominated are included in the Company’s results of operations as financial income, net in the period in which the currency exchange rates change.

In the years 2019 and 2020, functional currency of the Company’s subsidiary in Germany was the Euro, all amounts on the balance sheets have been translated into U.S. dollars using the exchange rates in effect on the relevant balance sheets dates. All amounts in the statements of operations have been translated into U.S. dollars using the exchange rate on the respective dates on which those elements are recognized. The resulting translation adjustments were reported as a component of accumulated other comprehensive income in shareholders’ equity. Management conducted a review of the functional currency of the German subsidiary and decided to change its functional currency to the U.S. dollars from the Euro effective January 1, 2021. These changes were based on an assessment by Company’s management that the U.S. dollars is the primary currency of the economic environment in which the German subsidiary operates.

Principles of consolidation:

The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions, including profits from intercompany sales have been eliminated upon consolidation.

Cash equivalents:

Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition.

Short-term bank deposits:

Short-term bank deposits are deposits with an original maturity of more than three months but less than one year from the date of acquisition.

Marketable securities:

The Company accounts for investments in marketable securities in accordance with ASC 320, “Investments - Debt and Equity Securities”. Management determines the appropriate classification of its investments at the time of purchase and re-evaluates such determinations at each balance sheet date. The Company classifies its marketable securities as either short-term or long-term based on each instrument’s underlying contractual maturity date and the entity’s expectations of sales and redemptions in the following year.

The Company classifies all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in “accumulated other comprehensive income (loss)” in shareholders’ equity. Realized gains and losses on sales of marketable securities are included in financial income, net and are derived using the specific identification method for determining the cost of securities.

The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in financial income, net.

In 2020 the Company adopted ASU 2016-13, Topic 326 “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments” which modifies the other than temporary impairment model for available for sale debt securities. The guidance requires the Company to determine whether a decline in fair value below the amortized cost basis of an available for sale debt security is due to credit related factors or noncredit related factors. A credit related impairment should be recognized as an allowance on the balance sheet with a corresponding adjustment to earnings, however, if the Company intends to sell an impaired available for sale debt security or more likely than not would be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis.

The Company did not recognize an allowance for credit losses on marketable securities as the expected losses were not material for the years ended December 31, 2021 and 2020. No impairment was recorded for the year ended December 31, 2019.

Inventories:

Inventories are measured at the lower of cost or net realizable value. The cost of inventories comprises costs of purchase and costs incurred in bringing the inventories to their present location and condition. Inventory write-off is measured as the difference between the cost of the inventory and net realizable value and is charged to the cost of sales.

Cost of inventories is determined as follows:

Raw materials and components - on the basis of weighted average cost.

Finished products - on the basis of average costs of materials, and other direct manufacturing cost.

Inventory write-offs have been provided to cover risks arising from slow-moving items, technological obsolescence and excess inventories according to revenue forecasts.

During the years ended December 31, 2021, 2020 and 2019, the Company recorded inventory write offs in a total amount of $4,909, $5,000 and $2,624, respectively.

Property, plant and equipment:

Property, plant and equipment are measured at cost, including directly attributable costs, less accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows:

	%
Office furniture and equipment		7 - 20
Computer and peripheral equipment		33
Machinery and equipment		7 - 33
Leasehold improvements		(*)
Building and land		(**)

(*)

Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement.

(**)

Building and land consist of land and a new ink manufacturing plant. In September 2019, the Company purchased the land which includes long-term leasehold rights, with a lease term of 98 years. As of December 31, 2021, the ink manufacturing plant is under construction. Depreciation of the manufacturing plant will begin upon completion of its construction.

Business combinations:

The Company accounts for business combinations in accordance with ASC No. 805, “Business Combinations” (“ASC No. 805”). ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. The excess of the fair value of the purchase price over the fair values of the identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Acquisition related costs are expensed in the statement of operations in the period incurred.

Goodwill and other intangible assets:

Goodwill reflects the excess of the purchase price of a business acquired over the fair value of net assets acquired. Under ASC No. 350, “Intangibles – Goodwill and other” (“ASC No. 350”), goodwill is not amortized but is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Company has elected to perform an annual impairment test of goodwill as of December 31 of each year, or more frequently if impairment indicators are present.

The Company operates in one operating segment and this segment comprises the only reporting unit. The goodwill impairment test is performed according to the following principles:

An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.

If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized.

During the years ended December 31, 2021, 2020 and 2019, no impairment of goodwill was identified.

Acquired identifiable finite-lived intangible assets are amortized on a straight-line basis or accelerated method over the estimated useful lives of the assets. The basis of amortization approximates the pattern in which the assets are utilized, over their estimated useful lives. The Company routinely reviews the remaining estimated useful lives of finite-lived intangible assets. In case the Company reduces the estimated useful life for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life.

Impairment of long-lived assets and intangible assets subject to amortization:

Property, plant and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, “Accounting for the Impairment or Disposal of Long-Lived Assets”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

During the years ended December 31, 2021, 2020 and 2019, no impairment losses were recorded.

Revenue recognition:

The Company generates revenues from sales of systems, consumables and services. The Company generates revenues from sale of its products directly to end-users and indirectly through independent distributors, all of whom are considered end-users.

The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration the Company expects to receive in revenue. Therefore, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when, or as, the Company satisfies a performance obligation.

Revenues from products, which consist of systems and consumables, are recognized at the point of time when control has transferred, in accordance with the agreed-upon delivery terms. Revenues from services are derived mainly from the sale of print heads, spare parts, upgrade kits, sale of service contracts and software subscriptions. The Company’s revenues from print heads, spare parts and upgrade kits revenues (collectively “Spare parts”) are recognized at the point of time when control has transferred, in accordance with the agreed-upon delivery terms. Service contracts and software subscriptions are recognized over time, on a straight-line basis, over the period of the service.

For multiple performance obligations arrangements, such as selling a system with service contract, installation and training, the Company accounts for each performance obligation separately as it is distinct. The transaction price is allocated to each distinct performance obligation on a relative standalone selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company can establish SSP based on the observable prices of services sold separately in comparable circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances change.

The Company does not account for training and installation as a separate performance obligation due to its immateriality in the context of its contracts. Accordingly, revenues from training and installation are recognized upon the delivery of its systems.

The Company periodically provides customer incentive programs in the form of product discounts, volume-based rebates and warrants (see also note 10g), which are accounted for as a variable consideration that are deducted from revenue in the period in which the revenue is recognized. These reductions to revenue are made based upon reasonable and reliable estimates that are determined according to historical experience and the specific terms and conditions of the incentive.

Although, in general, the Company does not grant rights of return, there are certain instances where such rights are granted. The Company maintains a provision for returns which is estimated, based primarily on historical experience as well as management judgment, and is recorded as a reduction of revenue. Such provision amounted to $2,178 and $1,759 as of December 31, 2021 and 2020, respectively and is included in accrued expenses and other current liabilities in the consolidated balance sheets.

Contract liabilities include amounts received from customers for which revenue has not yet been recognized. Contract liabilities amounted to $5,564 and $27,156 as of December 31, 2021 and 2020, respectively and are presented under deferred revenues and advances from customers and other long-term liabilities. During the year ended December 31, 2021, the Company recognized revenues in an amount of $26,248 which have been included in the contract liabilities on January 1, 2021.

In cases where the Company’s customers trade in old systems as part of sales of new systems, the fair value of the old systems is recorded as inventory, provided that such value can be determined.

Revenue disaggregated by revenue source consists of the following:

	Year ended December 31,
	2021		2020		2019

Systems	$	181,445	$	87,769	$	91,353
Ink and consumables		101,192		77,149		65,241
Service - spare parts		21,936		17,521		16,884
Service contracts and software subscriptions		17,433		10,892		6,388

Total revenue	$	322,006	$	193,331	$	179,866

The following table presents revenue disaggregated by geography based on customer location:

	Year ended December 31,
	2021		2020		2019

US	$	211,294	$	124,375	$	100,457
EMEA		78,686		45,859		48,810
Asia Pacific		23,341		14,211		22,101
Other		8,685		8,886		8,498

Total revenue	$	322,006	$	193,331	$	179,866

Sales by the Company’s distributors accounted for approximately 13%,14% and 30% of 2021 and 2020 and 2019 revenues, respectively.

Remaining performance obligations represents contracted revenues that have not yet been recognized, which includes deferred revenues and non-cancelable contracts that will be invoiced and recognized as revenue in future periods. The Company elected to apply the optional exemption under paragraph 606-10-50-14(a) not to disclose the remaining performance obligations that relate to contracts with an original expected duration of one year or less for which deferred revenues have not been recorded yet.

The following table represents the remaining performance obligations as of December 31, 2021, which are expected to be satisfied and recognized in future periods:

	2022		2023		2024 and thereafter

Service contracts and software subscriptions	$	6,542	$	493	$	7

Shipping and Handling:

Shipping and handling fees charged to the Company’s customers are recognized as revenue in the period shipped and the related costs for providing these services are recorded as a cost of revenue. Revenues from shipping in the years ended December 31, 2021, 2020 and 2019 were $3,985, $3,450 and $1,639, respectively.

Cost of revenues:

Cost of revenues is comprised mainly of cost of systems and ink production, employees’ salaries and related costs, allocated overhead expenses, import taxes, inventory write offs, royalties and shipping and handling fees.

Warranty costs:

The Company typically provides assurance type warranty for six months on its systems including parts and labor. A provision is recorded for estimated warranty costs at the time revenues are recognized based on historical warranty costs and management’s estimates. Factors that affect the Company’s warranty liability include the number of systems, historical rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts thereof as necessary.

The following are the changes in the liability for product warranty from January 1, 2020 to December 31, 2021:


Balance at January 1, 2020	$	1,614

Provision for warranties issued during the year		3,287
Reduction for payments and costs to satisfy claims		(3,251	)

Balance at December 31, 2020	$	1,650

Provision for warranties issued during the year		8,897
Reduction for payments and costs to satisfy claims		(5,935	)

Balance at December 31, 2021	$	4,612

Research and development expenses, net:

Research and development expenses, net of government grants, are charged to the statement of operations, as incurred, except for development expenses which are capitalized as described in note 2q.

Internal use software:

The Company capitalizes qualifying costs incurred during the application development stage related to software developed for internal use. These costs are capitalized based on qualifying criteria. Such costs are amortized over the software’s estimated life of three years. Costs incurred to develop software applications consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use computer software, and (b) payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the development or implementation of the software. Capitalized internal-use software costs are included in intangibles assets, net in the consolidated balance sheet.

Accounting for share-based compensation:

The Company accounts for share-based compensation in accordance with ASC No. 718, “Compensation - Stock Compensation” (“ASC No. 718”) that requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the award is recognized as an expense over the requisite service periods in the Company’s consolidated statement of operations.

The Company selected the binomial option pricing model as the most appropriate fair value method for its stock options awards with the following assumptions for the years ended December 31, 2021, 2020 and 2019:

	Year ended December 31,
	2021			2020			2019

Suboptimal exercise multiple		2.5			1.5			1.0-1.5
Risk free interest rate		0.09% -1.36	%		0.1%-0.5	%		1.5%-2.7	%
Volatility		58.49%-42.57	%		52	%		47%-48	%
Dividend yield		0	%		0	%		0	%

The expected volatility is derived from the volatility of the Company’s share price based upon actual historical stock price movements. The computation of the suboptimal exercise multiple is derived from empirical studies, based on those studies, the early exercise factor of public companies is approximately 150% for managers and 100% for other employees. The interest rate for the period within the contractual life of the award is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business.

The fair value of each restricted stock unit (“RSU”) including performance based RSUs is the market value of a single ordinary share of the Company, as determined based on the closing price of the Company’s ordinary shares on the date immediately prior to the day of grant.

The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the straight-line method, over the requisite service period of each of the awards. The Company recognizes forfeitures of awards as they occur.

Derivatives and hedging:

The Company follows FASB ASC No. 815,“Derivatives and Hedging” which requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of financial position at fair value. Accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging transaction and further, on the type of hedging transaction. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Due to the Company’s global operations, it is exposed to foreign currency exchange rate fluctuations in the normal course of its business.

The Company uses derivative financial instruments, specifically foreign currency forward and option contracts, to manage exposure to foreign currency risks, by hedging a portion of the Company’s forecasted payroll and related expenses denominated in New Israeli Shekels that it expects to incur within a year. The effect of exchange rate changes on foreign currency hedging contracts is expected to partially offset the effect of exchange rate changes on the underlying hedged item.

For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains or losses from contracts that were not designated as hedging instruments are recognized in “financial income, net”.

The Company measured the fair value of these contracts in accordance with ASC No. 820, “Fair Value Measurements and Disclosures” (“ASC No. 820”), and they were classified as level 2 of the fair value hierarchy.

Derivative instruments notional amounts:

The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting:

	December 31,
	2021		2020
Cash flow hedge	$	12,303	$	-

Derivative instrument outstanding:

As of December 31, 2021 and 2020, the fair value of the Company’s outstanding forward and option contracts amounted to $317 and $0, which are included within “Other accounts receivable and prepaid expenses” on the balance sheets.

Derivative instrument gains and losses

The Company’s outstanding derivatives designated as cash flow hedging instruments and their related gains and losses, are reported in the statement of cash flows as cash flows from operating activities.

The maximum length of time over which the Company hedges its exposure to the variability in future cash flows for forecasted transactions is less than 12 months.

Advertising:

Advertising costs are charged to operations as incurred and were $2,691, $2,273 and $1,981 for the years ended December 31, 2021, 2020 and 2019, respectively.

Income taxes:

The Company accounts for income taxes and uncertain tax positions in accordance with ASC No. 740, “Income Taxes” (“ASC No. 740”). ASC No. 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on temporary differences between 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 amounts more likely than not to be realized. Deferred tax assets and liabilities are classified as non-current assets and liabilities, respectively.

ASC No. 740 contains a two-step approach to recognizing and measuring a liability for 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 as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits on its taxes on income.

Concentrations of credit risks:

Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities, foreign exchange contracts and trade receivables.

The majority of the Company’s and its subsidiaries’ cash and cash equivalents, bank deposits and marketable securities are invested in major banks in Israel and the U.S. Generally, these cash equivalents may be redeemed upon demand and, therefore management believes that they bear a lower risk.

The Company attempts to limit its exposure to interest rate risk by investing in securities with maturities of less than four years; however, the Company may be unable to successfully limit its risk to interest rate fluctuations. At any time, a sharp rise in interest rates could have a material adverse impact on the fair value of its investment portfolio. Conversely, declines in interest rates could have a material favorable impact on the fair value of its investment portfolio. Increases or decreases in interest rates could have a material impact on interest earnings related to new investments during the period.

The trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located in the United States, Europe and Asia Pacific. The Company performs ongoing credit evaluations of its customers. In certain circumstances, the Company may require letters of credit from its customers, other collaterals or additional guarantees. The allowance for credit loss is based on the Company’s assessment of historical collection experience, customer creditworthiness, and current and future economic and market conditions. The Company regularly reviews the adequacy of the allowance for credit loss based on a combination of factors, including an assessment of the current customer’s aging balance, the nature and size of the customer and the financial status of the customer. Accounts receivable deemed uncollectable are charged against the allowance for credit loss when identified. The allowance of credit loss as of December 31, 2021 was immaterial.

Transfers of financial assets:

ASC 860 “Transfers and Servicing”, (“ASC 860”), establishes a standard for determining when a transfer of financial assets should be accounted for as a sale. The Company’s arrangements are such that the underlying conditions are met for the transfer of financial assets to qualify for accounting as a sale. The transfers of financial assets are typically performed by the factoring of receivables to two financial institutions.

For the year ended December 31, 2021, the Company sold trade receivables to two financial institutions in a total net amount of $1,387. Control and risk of those trade receivables were fully transferred in accordance with ASC 860. During the year ended December 31, 2021, the Company recorded an aggregate amount of $66 as financial expenses related to its factoring arrangements.

Severance pay:

The Company’s employees in Israel have subscribed to Section 14 of Israel’s Severance Pay Law, 5723-1963 (“Section 14”). Pursuant to Section 14, the Company’s employees, covered by this section, are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made on their behalf by the Company. Payments in accordance with Section 14 release the Company from any future severance liabilities in respect of those employees. Neither severance pay liability nor severance pay fund under Section 14 for such employees is recorded on the Company’s balance sheet.

With regards to employees in Israel that are not subject to Section 14, the Company’s liability for severance pay is calculated pursuant to the Severance Pay Law, based on the most recent salary of the relevant employees multiplied by the number of years of employment as of the balance sheet date. These employees are entitled to one-month salary for each year of employment or a portion thereof. The Company’s liability for these employees is fully provided for via monthly deposits with severance pay funds, insurance policies and an accrual. The value of these deposits is recorded as an asset with other assets on the Company’s balance sheet.

The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Severance Pay Law or labor agreements.

Severance expenses for the years ended December 31, 2021, 2020 and 2019 were $2,895, $2,250 and $1,808 respectively.

Fair value of financial instruments:

The Company applies ASC No. 820 Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

In determining fair value, the Company uses various valuation approaches. ASC No. 820 establishes a hierarchy for inputs used in measuring fair value that maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The hierarchy is broken down into three levels based on the inputs as follows:

Level 1 -

Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

Level 2 -

Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 -

Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The carrying amount of cash, cash equivalents, short term bank deposits, trade receivables, other accounts receivable, trade payables and other accounts payable and accrued expenses approximates their fair value due to the short-term maturities of such instruments.

The Company measures its marketable securities and foreign currency derivative instruments at fair value. Marketable securities and foreign currency derivative instruments are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

Comprehensive income:

The Company accounts for comprehensive income in accordance with FASB ASC No. 220, “Comprehensive Income.” Comprehensive income generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments, unrealized gains and losses on marketable securities and unrealized gain and losses from foreign currency translation adjustments.

aa.

Basic and diluted earnings per share:

Basic earnings No. 260, “Earnings Per Share” is computed based on the weighted average number of ordinary shares outstanding during each period. Diluted earnings per share is computed based on the weighted average number of ordinary shares outstanding during each period, plus dilutive potential ordinary shares considered outstanding during the period, in accordance with the relevant ASC.

The total number of shares related to the outstanding options and RSU’s excluded from the calculation of diluted earnings per share due to their anti-dilutive effect was 5,005, 20,443 and 536,359 for the years ended December 31, 2021, 2020 and 2019, respectively.

bb.

New accounting pronouncement, not yet adopted

In November 2021, the FASB issued ASU 2021-10, ASC Topic 832 “Disclosures by Business Entities about Government Assistance”. That standard requires the following annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy: (1) Information about the nature of the transactions and the related accounting policy used to account for the transactions (2) The line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item, and (3) Significant terms and conditions of the transactions, including commitments and contingencies. The standard will become effective for fiscal years beginning after December 15, 2021. The Company does not expect this ASU to have a material effect, if any, on its consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, ASC Topic 805 “Business Combinations”. This standard creates an exception to the general recognition and measurement principle for contract assets and contract liabilities from contracts with customers acquired in a business combination. Under this exception, an acquirer applies ASC 606, Revenue from Contracts with Customers, to recognize and measure contract assets and contract liabilities on the acquisition date. ASC 805 generally requires the acquirer in a business combination to recognize and measure the assets it acquires and the liabilities it assumes at fair value on the acquisition date. The standard will become effective for fiscal years beginning after December 15, 2022. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements.

Selected Statements of Operations Data (Details) - Schedule of financial income, net - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financial income:
Interest on bank deposits and other	$ 2,129	$ 2,238	$ 2,535
Realized gain on sale of marketable securities, net	32	503	271
Interest on marketable securities	3,243	2,870	1,975
Amortization of premium and accretion of discount on marketable securities, net			112
Total financial income	5,404	5,611	4,893
Financial expenses:
Bank charges	(286)	(357)	(405)
Exchange rate differences, net	(1,240)	(1,361)	(1,175)
Amortization of premium and accretion of discount on marketable securities, net	(1,279)	(395)
Total financial expenses	(2,805)	(2,113)	(1,580)
Total financial income, net:	$ 2,599	$ 3,498	$ 3,313

Significant Accounting Policies (Details) - Schedule of outstanding performance obligations of deferred revenues $ in Thousands	Dec. 31, 2021 USD ($)
2022 [Member]
Revenue from External Customer [Line Items]
Service contracts and software subscriptions	$ 6,542
2023 [Member]
Revenue from External Customer [Line Items]
Service contracts and software subscriptions	493
2024 and thereafter [Member]
Revenue from External Customer [Line Items]
Service contracts and software subscriptions	$ 7

Geographic Information (Details) - Schedule of major customers’ data as a percentage	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Customer A [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue by major customers	27.00%	11.00%	12.00%
Customer B [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue by major customers	12.00%	11.00%	6.00%

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 15,527	$ (4,783)	$ 10,167
Change in unrealized gains (losses) on marketable securities:
Unrealized gains (losses) arising during the period, net of tax	(2,423)	1,946	1,140
Losses (gains) reclassified into net income (loss), net of tax	(32)	(465)	(251)
Net change	(2,455)	1,481	889
Change in unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period, net oftax	415	285	130
Losses (gains) reclassified into net income (loss), net oftax	(122)	(294)	(28)
Net change	293	(9)	102
Foreign currency translation adjustment		418	90
Total other comprehensive income (loss), net of tax	(2,162)	1,890	1,081
Comprehensive income (loss)	$ 13,365	$ (2,893)	$ 11,248

Other Payables and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2021

Other Payables And Accrued Expenses Disclosure [Abstract]

Schedule of other payable and accrued expenses

	December 31,
	2021		2020

Government authorities	$	3,221	$	902
Warranty provision		3,640		1,419
Provision for returns		2,178		1,759
Professional services		1,411		774
Accrued expenses		6,838		6,759

	$	17,288	$	11,613

Fair Value Measurements (Details) - Schedule of investments with continuous unrealized losses - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value Measurements (Details) - Schedule of investments with continuous unrealized losses [Line Items]
Less than 12 months, Fair value	$ 120,723	$ 6,823
Less than 12 months, Unrealized losses	(1,166)	(14)
More than 12 months, Fair value	3,586
More than 12 months, Unrealized losses	(23)
Total, Fair value	124,309	6,823
Total, Unrealized Losses	(1,189)	(14)
Corporate Debentures [Member]
Fair Value Measurements (Details) - Schedule of investments with continuous unrealized losses [Line Items]
Less than 12 months, Fair value	114,199	3,821
Less than 12 months, Unrealized losses	(1,075)	(3)
More than 12 months, Fair value	1,063
More than 12 months, Unrealized losses	(15)
Total, Fair value	115,262	3,821
Total, Unrealized Losses	(1,090)	(3)
Government Debentures [Member]
Fair Value Measurements (Details) - Schedule of investments with continuous unrealized losses [Line Items]
Less than 12 months, Fair value	6,524	3,002
Less than 12 months, Unrealized losses	(91)	(11)
More than 12 months, Fair value	2,253
More than 12 months, Unrealized losses	(8)
Total, Fair value	9,047	3,002
Total, Unrealized Losses	$ (99)	$ (11)

Accounting Policies, by Policy (Policies)

12 Months Ended

Dec. 31, 2021

Significant Accounting Policies [Abstract]

Use of estimates

Use of estimates:

Financial statements in United States dollars

Financial statements in United States dollars:

Principles of consolidation

Principles of consolidation:

Cash equivalents

Cash equivalents:

Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition.

Short-term bank deposits

Short-term bank deposits:

Short-term bank deposits are deposits with an original maturity of more than three months but less than one year from the date of acquisition.

Marketable securities

Marketable securities:

Inventories

Inventories:

Cost of inventories is determined as follows:

Raw materials and components - on the basis of weighted average cost.

Finished products - on the basis of average costs of materials, and other direct manufacturing cost.

Inventory write-offs have been provided to cover risks arising from slow-moving items, technological obsolescence and excess inventories according to revenue forecasts.

During the years ended December 31, 2021, 2020 and 2019, the Company recorded inventory write offs in a total amount of $4,909, $5,000 and $2,624, respectively.

Property, plant and equipment

Property, plant and equipment:

	%
Office furniture and equipment		7 - 20
Computer and peripheral equipment		33
Machinery and equipment		7 - 33
Leasehold improvements		(*)
Building and land		(**)

(*)

(**)

Business combinations

Business combinations:

Goodwill and other intangible assets

Goodwill and other intangible assets:

The Company operates in one operating segment and this segment comprises the only reporting unit. The goodwill impairment test is performed according to the following principles:

An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.

During the years ended December 31, 2021, 2020 and 2019, no impairment of goodwill was identified.

Impairment of long-lived assets and intangible assets subject to amortization:

During the years ended December 31, 2021, 2020 and 2019, no impairment losses were recorded.

Revenue recognition:

In cases where the Company’s customers trade in old systems as part of sales of new systems, the fair value of the old systems is recorded as inventory, provided that such value can be determined.

Revenue disaggregated by revenue source consists of the following:

	Year ended December 31,
	2021		2020		2019

Systems	$	181,445	$	87,769	$	91,353
Ink and consumables		101,192		77,149		65,241
Service - spare parts		21,936		17,521		16,884
Service contracts and software subscriptions		17,433		10,892		6,388

Total revenue	$	322,006	$	193,331	$	179,866

The following table presents revenue disaggregated by geography based on customer location:

	Year ended December 31,
	2021		2020		2019

US	$	211,294	$	124,375	$	100,457
EMEA		78,686		45,859		48,810
Asia Pacific		23,341		14,211		22,101
Other		8,685		8,886		8,498

Total revenue	$	322,006	$	193,331	$	179,866

Sales by the Company’s distributors accounted for approximately 13%,14% and 30% of 2021 and 2020 and 2019 revenues, respectively.

The following table represents the remaining performance obligations as of December 31, 2021, which are expected to be satisfied and recognized in future periods:

	2022		2023		2024 and thereafter

Service contracts and software subscriptions	$	6,542	$	493	$	7

Shipping and Handling:

Cost of revenues:

Warranty costs:

The following are the changes in the liability for product warranty from January 1, 2020 to December 31, 2021:


Balance at January 1, 2020	$	1,614

Provision for warranties issued during the year		3,287
Reduction for payments and costs to satisfy claims		(3,251	)

Balance at December 31, 2020	$	1,650

Provision for warranties issued during the year		8,897
Reduction for payments and costs to satisfy claims		(5,935	)

Balance at December 31, 2021	$	4,612

Research and development expenses, net:

Research and development expenses, net of government grants, are charged to the statement of operations, as incurred, except for development expenses which are capitalized as described in note 2q.

Internal use software:

Accounting for share-based compensation:

	Year ended December 31,
	2021			2020			2019

Suboptimal exercise multiple		2.5			1.5			1.0-1.5
Risk free interest rate		0.09% -1.36	%		0.1%-0.5	%		1.5%-2.7	%
Volatility		58.49%-42.57	%		52	%		47%-48	%
Dividend yield		0	%		0	%		0	%

Derivatives and hedging:

Derivative instruments notional amounts:

The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting:

	December 31,
	2021		2020
Cash flow hedge	$	12,303	$	-

Derivative instrument outstanding:

Impairment of long-lived assets and intangible assets subject to amortization

Impairment of long-lived assets and intangible assets subject to amortization:

During the years ended December 31, 2021, 2020 and 2019, no impairment losses were recorded.

Revenue recognition

Revenue recognition:

In cases where the Company’s customers trade in old systems as part of sales of new systems, the fair value of the old systems is recorded as inventory, provided that such value can be determined.

Revenue disaggregated by revenue source consists of the following:

	Year ended December 31,
	2021		2020		2019

Systems	$	181,445	$	87,769	$	91,353
Ink and consumables		101,192		77,149		65,241
Service - spare parts		21,936		17,521		16,884
Service contracts and software subscriptions		17,433		10,892		6,388

Total revenue	$	322,006	$	193,331	$	179,866

The following table presents revenue disaggregated by geography based on customer location:

	Year ended December 31,
	2021		2020		2019

US	$	211,294	$	124,375	$	100,457
EMEA		78,686		45,859		48,810
Asia Pacific		23,341		14,211		22,101
Other		8,685		8,886		8,498

Total revenue	$	322,006	$	193,331	$	179,866

Sales by the Company’s distributors accounted for approximately 13%,14% and 30% of 2021 and 2020 and 2019 revenues, respectively.

The following table represents the remaining performance obligations as of December 31, 2021, which are expected to be satisfied and recognized in future periods:

	2022		2023		2024 and thereafter

Service contracts and software subscriptions	$	6,542	$	493	$	7

Shipping and Handling

Shipping and Handling:

Cost of revenues

Cost of revenues:

Warranty costs

Warranty costs:

The following are the changes in the liability for product warranty from January 1, 2020 to December 31, 2021:

Research and development expenses, net

Research and development expenses, net:

Research and development expenses, net of government grants, are charged to the statement of operations, as incurred, except for development expenses which are capitalized as described in note 2q.

Internal use software

Internal use software:

Accounting for share-based compensation

Accounting for share-based compensation:

	Year ended December 31,
	2021			2020			2019

Suboptimal exercise multiple		2.5			1.5			1.0-1.5
Risk free interest rate		0.09% -1.36	%		0.1%-0.5	%		1.5%-2.7	%
Volatility		58.49%-42.57	%		52	%		47%-48	%
Dividend yield		0	%		0	%		0	%

Derivatives and hedging

Derivatives and hedging:

Derivative instruments notional amounts:

The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting:

	December 31,
	2021		2020
Cash flow hedge	$	12,303	$	-

Derivative instrument outstanding:

Derivative instrument gains and losses

The maximum length of time over which the Company hedges its exposure to the variability in future cash flows for forecasted transactions is less than 12 months.

Advertising:

Advertising costs are charged to operations as incurred and were $2,691, $2,273 and $1,981 for the years ended December 31, 2021, 2020 and 2019, respectively.

Income taxes:

Concentrations of credit risks:

Transfers of financial assets:

Severance pay:

Severance expenses for the years ended December 31, 2021, 2020 and 2019 were $2,895, $2,250 and $1,808 respectively.

Fair value of financial instruments:

The Company applies ASC No. 820 Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e.

Advertising

Advertising:

Advertising costs are charged to operations as incurred and were $2,691, $2,273 and $1,981 for the years ended December 31, 2021, 2020 and 2019, respectively.

Income taxes

Income taxes:

Concentrations of credit risks

Concentrations of credit risks:

Transfers of financial assets

Transfers of financial assets:

Severance pay

Severance pay:

Severance expenses for the years ended December 31, 2021, 2020 and 2019 were $2,895, $2,250 and $1,808 respectively.

Fair value of financial instruments

Fair value of financial instruments:

The hierarchy is broken down into three levels based on the inputs as follows:

Level 1 -

Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

Level 2 -

Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 -

Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Comprehensive income

Comprehensive income:

Basic and diluted earnings per share

aa.

Basic and diluted earnings per share:

New accounting pronouncement, not yet adopted

bb.

New accounting pronouncement, not yet adopted

Geographic Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

GEOGRAPHIC INFORMATION

NOTE 15:-

GEOGRAPHIC INFORMATION

Summary information about geographic areas:

The Company operates in one reportable segment (see note 1 for a brief description of the Company’s business). Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis.

The following table presents long-lived assets by geographic region as of December 31, 2021 and 2020:

	December 31,
	2021		2020

U.S	$	6,433	$	2,835
Israel		61,339		45,835
EMEA		1,787		1,142
Asia Pacific		642		496

	$	70,201	$	51,008

Major customers’ data as a percentage of total revenues:

The following table sets forth the customers that accounted for 10% or more of the Company’s total revenues in each of the years set forth below:

	Year ended December 31,
	2021			2020			2019

Customer A		27	%		11	%		12	%
Customer B		12	%		11	%		6	%

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Geographic Information (Details) - Schedule of long-lived assets by geographic region - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Geographic Information (Details) - Schedule of long-lived assets by geographic region [Line Items]
Long-lived assets	$ 70,201	$ 51,008
U.S [Member]
Geographic Information (Details) - Schedule of long-lived assets by geographic region [Line Items]
Long-lived assets	6,433	2,835
Israel [Member]
Geographic Information (Details) - Schedule of long-lived assets by geographic region [Line Items]
Long-lived assets	61,339	45,835
EMEA [Member]
Geographic Information (Details) - Schedule of long-lived assets by geographic region [Line Items]
Long-lived assets	1,787	1,142
Asia Pacific [Member]
Geographic Information (Details) - Schedule of long-lived assets by geographic region [Line Items]
Long-lived assets	$ 642	$ 496

Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets

Dec. 31, 2021

Computer and peripheral equipment [Member]

Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items]

Property and equipment useful life of assets at annual rates

33.00%

Leasehold Improvements [Member]

Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items]

Property and equipment useful life of assets at annual rates

^[1]

Building and land [Member]

Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items]

Property and equipment useful life of assets at annual rates

^[2]

Minimum [Member] | Office furniture and equipment [Member]

Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items]

Property and equipment useful life of assets at annual rates

7.00%

Minimum [Member] | Machinery and equipment [Member]

Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items]

Property and equipment useful life of assets at annual rates

7.00%

Maximum [Member] | Office furniture and equipment [Member]

Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items]

Property and equipment useful life of assets at annual rates

20.00%

Maximum [Member] | Machinery and equipment [Member]

Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items]

Property and equipment useful life of assets at annual rates

33.00%

[1]	Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement.
[2]	Building and land consist of land and a new ink manufacturing plant. In September 2019, the Company purchased the land which includes long-term leasehold rights, with a lease term of 98 years. As of December 31, 2021, the ink manufacturing plant is under construction. Depreciation of the manufacturing plant will begin upon completion of its construction.

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Schedule of accumulated balances other comprehensive income (Loss)

	Unrealized Gains (losses) on marketable securities			Unrealized Gains (losses) on cash flow hedges			Foreign currency translation adjustment		Total

Beginning balance	$	1,933		$	-		$	800	$	2,733
Other comprehensive income before reclassifications		(2,423	)		415					(2,008	)
Amounts reclassified from accumulated other comprehensive income		(32	)		(122	)		-		(154	)

Net current period other comprehensive income		(2,455	)		293			-		(2,162	)

Ending Balance	$	(522	)	$	293		$	800	$	571

Balances and Transactions with Related Parties (Details) - USD ($) $ in Thousands		12 Months Ended
	Sep. 13, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Fritz Companies Israel T. Ltd. [Member]
Balances and Transactions with Related Parties (Details) [Line Items]
Logistic service fees		$ 5,369	$ 4,096	$ 3,762
Trade payables balances due to related party		1,178	1,546
Accord Insurance Agency Ltd. [Member]
Balances and Transactions with Related Parties (Details) [Line Items]
Total premium		423	838	843
Priority Software Ltd.[Member]
Balances and Transactions with Related Parties (Details) [Line Items]
Trade payables balances due to related party		0	65
Maintenances fees and additional licenses acquired amount		221	100	$ 109
Tritone Technologies Ltd. [Member]
Balances and Transactions with Related Parties (Details) [Line Items]
Sublease, description	the sublease of 192 square meters in Rosh Ha’Ayin. The term of the related lease is 24 months until September 12, 2022, with an option to extend the term by additional 12 months. The rent under the sublease is $2 per month, in addition to the rent for the related lease that is covered by the sublessee. The sublease agreement is carried out on a “back-to-back” basis, as the Company pays over the rent that it receives directly to its landlord.
Trade receivable balance due from related party		5	3
Magalcom Ltd. [Member]
Balances and Transactions with Related Parties (Details) [Line Items]
Total consideration		650
Transaction amount		777
Trade payables balances due to related party		$ 282	$ 9

Earnings (Losses) Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

EARNINGS (LOSSES) PER SHARE

NOTE 11:-

EARNINGS (LOSSES) PER SHARE

The following table sets forth the computation of basic and diluted earnings (losses) per share:

	Year ended December 31,
	2021		2020			2019
Numerator for basic and diluted earnings (losses) per share:

Net income (loss)	$	15,527	$	(4,783	)	$	10,167

Weighted average ordinary shares outstanding:

Denominator for basic earnings (losses) per share		47,079,358		42,286,275			38,079,394
Effect of dilutive securities:
Employee share options, RSUs, PSUs and Warrants		1,520,737		-			1,214,721

Denominator for diluted earnings (losses) per share		48,600,095		42,286,275			39,294,115

Basic earnings (losses) per share	$	0.33	$	(0.11	)	$	0.27

Diluted earnings (losses) per share	$	0.32	$	(0.11	)	$	0.26

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation expenses	$ 5,252	$ 3,492	$ 3,611
Reduction of cost and accumulated depreciation	$ 600	$ 1,621	$ 868

General

12 Months Ended

Dec. 31, 2021

General [Abstract]

GENERAL

NOTE 1:-

GENERAL

Kornit Digital Ltd. (the “Company”) was incorporated in 2002 under the laws of the State of Israel. The Company and its subsidiaries develop, design and market digital printing solutions for the global printed textile industry. The Company’s and its subsidiaries’ solutions are based on their proprietary digital textile printing systems, ink and other consumables, associated software and value-added services.

The Company established wholly owned subsidiaries in Israel, the United States, Germany, Hong Kong, the United Kingdom and Japan. The Company’s subsidiaries are engaged primarily in services, sales, and marketing, except for the Israeli subsidiary which is engaged primarily in research and development and manufacturing.

The Company depends on four major suppliers to supply certain components for the production of its products. If one of these suppliers fails to deliver or delays the delivery of the necessary components, the Company will be required to seek alternative sources of supply. A change in these suppliers could result in manufacturing delays, which could cause a possible loss of sales and, consequently, could adversely affect the Company’s results of operations and financial position.

On August 10, 2021, the Company closed an asset purchase agreement with Voxel8 Inc. (“Voxel8”), an advanced additive manufacturing technology for textiles, which allows for digital fabrication of functional features with zonal control of material properties, in addition to utilizing high-performance elastomers adhering to inkjet technology. Under the agreement the Company purchased the associated assets for a total consideration of $14,991 in cash (see note 3).

On November 19, 2021, the Company closed a follow - on offering where 2,336,892 ordinary shares were issued and sold by the Company to the public for aggregate net proceeds of $339,760 to the Company. In addition, there was a secondary component of the offering in which 705,953 ordinary shares that were issued pursuant to exercise of warrants were sold by the Company’s global customer. The Company did not receive any of the proceeds from the sale of these additional ordinary shares.

Balances and Transactions with Related Parties

12 Months Ended

Dec. 31, 2021

BALANCES AND TRANSACTIONS WITH RELATED PARTIES

NOTE 17:-

BALANCES AND TRANSACTIONS WITH RELATED PARTIES

The Company’s policy is to enter into transactions with related parties on terms that, on the whole, are no less favorable, than those available from unaffiliated third parties. Based on the Company’s experience in the business sectors in which it operates and the terms of its transactions with unaffiliated third parties, the Company believes that all of the transactions described below met this policy at the time they occurred.

Fritz Companies Israel T. Ltd. (“Fritz”)

Fritz is a logistics company which is owned, in part, by the Chairman of the Board since March 2018. The Company has an ongoing logistic contract with Fritz. During the years ended December 31, 2021, 2020 and 2019 logistic service fees amounted to $5,369, $4,096 and $3,762, respectively. As of December 31, 2021 and 2020, the Company had trade payables balances due to this related party in amounts of $1,178 and $1,546, respectively.

Accord Insurance Agency Ltd. (“Accord”)

The Company maintains a business relationship with Accord Insurance Agency Ltd., or Accord, a company which is an insurance agency that is owned in part and controlled by the Company’s Chairman of the Board. Accord is the Company’s insurance agent for most of its insurance policies. During the years ended December 31, 2021, 2020 and 2019, the total fees paid to Accord under the policies amounted to $423, $838 and $843, respectively.

Priority Software Ltd. (“Priority”)

Priority is the Company’s ERP solution provider, which is owned, in part by a few of the Company’s Board members. During the years ended December 31, 2021, 2020 and 2019 maintenances fees and additional licenses acquired amounted to $221, $100 and $109, respectively. As of December 31, 2021 and 2020, the Company had trade payables balances due to this related party in amounts of $0 and $65, respectively.

Tritone Technologies Ltd. (“Tritone”)

On September 13, 2021 the Company entered into a sublease agreement with Tritone Technologies Ltd., whose CEO is Mr. Ofer Ben Zur, a director of the Company, and one of whose shareholders is an equity fund controlled by the Chairman of the Board, for the sublease of 192 square meters in Rosh Ha’Ayin. The term of the related lease is 24 months until September 12, 2022, with an option to extend the term by additional 12 months. The rent under the sublease is $2 per month, in addition to the rent for the related lease that is covered by the sublessee. The sublease agreement is carried out on a “back-to-back” basis, as the Company pays over the rent that it receives directly to its landlord. As of December 31, 2021, and 2020, the Company had trade receivables balances due from this related party in amounts of $5 and $3 respectively.

Magalcom Ltd. (“Magalcom”)

The Company entered into a transaction with Magalcom which is owned, in part and controlled, by the Company’s Chairman of the Board, for the replacement of communication equipment in the Company’s conference rooms. Total consideration to be paid to Magalcom pursuant to this transaction is approximately $650. During the year ended December 31, 2021, service fees under the transaction amounted to $777. As of December 31, 2021 and 2020, the Company had a trade payables balances due to this related party in amounts of $282 and $9, respectively.

Fair Value Measurements (Details)	12 Months Ended
Fair Value Measurements (Details)	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Continuous unrealized losses	12 months	12 months

Inventories (Tables)

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Schedule of inventories

	December 31,
	2021		2020

Raw materials and components	$	29,857	$	18,026
Finished products (*)		33,159		34,461

	$	63,017	$	52,487

(*)	Includes amounts of $654 and $10,628 as of December 31, 2021 and 2020, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized.

Significant Accounting Policies (Details) - Schedule of fair value method for stock options awards - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Suboptimal exercise multiple (in Dollars per share)	$ 2.5	$ 1.5
Volatility		52.00%
Dividend yield	0.00%	0.00%	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Suboptimal exercise multiple (in Dollars per share)			$ 1
Risk free interest rate	0.09%	0.10%	1.50%
Volatility	58.49%		47.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Suboptimal exercise multiple (in Dollars per share)			$ 1.5
Risk free interest rate	1.36%	0.50%	2.70%
Volatility	42.57%		48.00%

Property, Plant and Equipment, Net

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

NOTE 6:-

PROPERTY, PLANT AND EQUIPMENT, NET

	December 31,
	2021			2020
Cost:

Computer and peripheral equipment	$	8,092		$	4,720
Office furniture and equipment		3,268			2,233
Machinery and equipment		28,474			*20,301
Leasehold improvements		16,061			8,627
Building and land		12,744			*12,315

		68,639			48,196

Accumulated depreciation		(23,593	)		(18,941	)

Property, plant and equipment, net	$	45,046		$	29,255

* Reclassified

Depreciation expenses for the years ended December 31, 2021, 2020 and 2019 were $5,252, $3,492, and $3,611, respectively.

During the years ended December 31, 2021, 2020 and 2019, the Company recorded a reduction of $600, $1,621 and $868, respectively to the cost and accumulated depreciation of fully depreciated equipment that is no longer used.

Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 9:-

COMMITMENTS AND CONTINGENT LIABILITIES

Charges:

As of December 31, 2021, the Company had a line of credit with an Israeli bank for total borrowings of up to $1.1 million, all of which was undrawn as of December 31, 2021. This line of credit is unsecured and available subject to (i) the Company’s maintenance of a 30% ratio of total tangible shareholders’ equity to total tangible assets, and (ii) the total credit use being less than 70% of the Company’s and its subsidiaries’ receivables. Interest rates across this credit line varied from 0.3% to 2.3% as of December 31, 2021.

Purchase commitments:

As of December 31, 2021, the Company had $63,561 of purchase commitments for goods and services from vendors. These commitments are due primarily within one year.

Litigation:

From time to time, the Company is party to various legal proceedings, claims and litigation that arise in the normal course of business. It is the opinion of management that the ultimate outcome of these matters will not have a material adverse effect on the Company’s financial position, results of operations or cash flows.

Royalty Commitments:

Under the Company’s agreement for purchasing print heads and other products, which was amended in 2016, the Company is obligated to pay 2.5% royalties of its annual ink revenues up to maximum annual amount of $625.

Royalties expenses for each of the years ended December 31, 2021, 2020 and 2019 were $625.

Guarantees:

As of December 31, 2021, the Company provided five bank guarantees in a total amount of $1,907 primarily for its rented facilities.

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Significant Accounting Policies [Abstract]

Schedule of property and equipment on straight-line basis over useful life of assets

	%
Office furniture and equipment		7 - 20
Computer and peripheral equipment		33
Machinery and equipment		7 - 33
Leasehold improvements		(*)
Building and land		(**)

(*)

(**)

Schedule of revenue disaggregated by revenue source

	Year ended December 31,
	2021		2020		2019

Systems	$	181,445	$	87,769	$	91,353
Ink and consumables		101,192		77,149		65,241
Service - spare parts		21,936		17,521		16,884
Service contracts and software subscriptions		17,433		10,892		6,388

Total revenue	$	322,006	$	193,331	$	179,866

Schedule of revenue disaggregated by geography based on customer location

	Year ended December 31,
	2021		2020		2019

US	$	211,294	$	124,375	$	100,457
EMEA		78,686		45,859		48,810
Asia Pacific		23,341		14,211		22,101
Other		8,685		8,886		8,498

Total revenue	$	322,006	$	193,331	$	179,866

Schedule of outstanding performance obligations of deferred revenues

	2022		2023		2024 and thereafter

Service contracts and software subscriptions	$	6,542	$	493	$	7

Schedule of changes in liability for product warranty


Balance at January 1, 2020	$	1,614

Provision for warranties issued during the year		3,287
Reduction for payments and costs to satisfy claims		(3,251	)

Balance at December 31, 2020	$	1,650

Provision for warranties issued during the year		8,897
Reduction for payments and costs to satisfy claims		(5,935	)

Balance at December 31, 2021	$	4,612

Schedule of fair value method for stock options awards

	Year ended December 31,
	2021			2020			2019

Suboptimal exercise multiple		2.5			1.5			1.0-1.5
Risk free interest rate		0.09% -1.36	%		0.1%-0.5	%		1.5%-2.7	%
Volatility		58.49%-42.57	%		52	%		47%-48	%
Dividend yield		0	%		0	%		0	%

Schedule of notional amounts of outstanding derivative positions

	December 31,
	2021		2020
Cash flow hedge	$	12,303	$	-

Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 4:-

FAIR VALUE MEASUREMENTS

The following is a summary of marketable securities held as of December 31, 2021 and 2020:

	December 31, 2021
	Amortized cost		Gross unrealized gain		Gross unrealized loss			Fair value
Matures within one year:
Corporate debentures	$	25,430	$	170	$	-		$	25,600
Government debentures		2,507		9		-			2,516

		27,937		179		-			28,116
Matures after one year through four years:
Corporate debentures		140,364		435		(1,090	)		139,709
Government debentures		9,648		11		(99	)		9,560

		150,012		446		(1,189	)		149,269

Total	$	177,949	$	625	$	(1,189	)	$	177,385

	December 31, 2020
	Amortized Cost		Gross unrealized gain		Gross unrealized loss			Fair value
Matures within one year:
Corporate debentures	$	13,106	$	210	$	-		$	13,316
Government debentures		402		-		-			402

		13,508		210		-			13,718
Matures after one year through four years:
Corporate debentures		63,611		1,815		(3	)		65,423
Government debentures		6,145		79		(11	)		6,213

		69,756		1,894		(14	)		71,636

Total	$	83,264	$	2,104	$	(14	)	$	85,354

Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values, were as follows as of December 31, 2021 and 2020:

	December 31, 2021
	Less than 12 months					More than 12 months					Total
	Fair Value		Unrealized Losses			Fair value		Unrealized losses			Fair value		Unrealized losses

Corporate debentures	$	114,199	$	(1,075	)	$	1,063	$	(15	)	$	115,262	$	(1,090	)
Government debentures		6,524		(91	)		2,253		(8	)		9,047		(99	)

Total	$	120,723	$	(1,166	)	$	3,586	$	(23	)	$	124,309	$	(1,189	)

	December 31, 2020
	Less than 12 months					More than 12 months				Total
	Fair value		Unrealized Losses			Fair value		Unrealized losses		Fair value		Unrealized losses

Corporate debentures	$	3,821	$	(3	)	$	-	$	-	$	3,821	$	(3	)
Government debentures		3,002		(11	)		-		-		3,002		(11	)

Total	$	6,823	$	(14	)	$	-	$	-	$	6,823	$	(14	)

The table below sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2021 and 2020 by level within the fair value hierarchy.

	December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	-	$	177,385	$	-	$	177,385
Foreign currency derivative contracts		-		317		-		317

Total financial assets	$	-	$	177,702	$	-	$	177,702

	December 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	-	$	85,354	$	-	$	85,354

Total financial assets	$	-	$	85,354	$	-	$	85,354

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventories

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 5:-

INVENTORIES

	December 31,
	2021		2020

Raw materials and components	$	29,857	$	18,026
Finished products (*)		33,159		34,461

	$	63,017	$	52,487

(*)	Includes amounts of $654 and $10,628 as of December 31, 2021 and 2020, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized.

Leases (Details) - Schedule of lease expense - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of lease expense [Abstract]
Operating lease	$ 5,085	$ 4,544	$ 3,857
Short-term lease	264	34	131
Total lease expense	$ 5,085	$ 4,578	$ 3,988

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 611,551	$ 125,777
Short-term bank deposits	9,168	224,804
Marketable securities	28,116	13,718
Trade receivables, net	49,797	51,566
Inventories	63,017	52,487
Other accounts receivable and prepaid expenses	13,694	9,178
Total current assets	775,343	477,530
LONG-TERM ASSETS:
Marketable securities	149,269	71,636
Deposits and other long-term assets	856	395
Severance pay fund	357	337
Deferred taxes	9,339	5,096
Property, plant and equipment, net	45,046	29,255
Operating lease right-of-use assets	25,155	21,053
Intangible assets, net	10,063	7,221
Goodwill	25,447	16,466
Total long-term assets	265,532	151,459
Total assets	1,040,875	628,989
CURRENT LIABILITIES:
Trade payables	46,448	32,016
Employees and payroll accruals	22,482	15,022
Deferred revenues and advances from customers	5,401	27,019
Operating lease liabilities	5,058	3,957
Other payables and accrued expenses	17,287	11,613
Total current liabilities	96,676	89,627
LONG TERM LIABILITIES:
Accrued severance pay	1,543	1,214
Operating lease liabilities	21,900	18,688
Other long-term liabilities	1,203	443
Total long-term liabilities	24,646	20,345
SHAREHOLDERS’ EQUITY:
Ordinary shares of NIS 0.01 par value – Authorized: 200,000,000 shares at December 31, 2021 and 2020, respectively; Issued and Outstanding: 49,619,782 shares and 45,988,613 shares at December 31, 2021 and 2020 respectively	133	121
Additional paid in capital	875,367	488,208
Accumulated other comprehensive income	571	2,733
Retained earnings	43,482	27,955
Total shareholders’ equity	919,553	519,017
Total liabilities and shareholders’ equity	$ 1,040,875	$ 628,989

Leases (Details) - Schedule of maturities of operating lease liabilities $ in Thousands	Dec. 31, 2021 USD ($)
Schedule of maturities of operating lease liabilities [Abstract]
2022	$ 5,704
2023	4,446
2024	4,015
2025	3,271
2026 and after	12,353
Total operating lease payments	29,789
Less - imputed interest	2,831
Present value of lease liabilities	$ 26,958

Acquisitions (Details) - Schedule of purchase price allocation
$ in Thousands

12 Months Ended

Dec. 31, 2021

USD ($)

Tangible assets

$ 3,353

$ 471

Infinite

$ 4,715

Customer Gateway [Member]

Tangible assets

Goodwill

$ 10,902

Goodwill

Infinite

Total purchase price

$ 16,884

Tangible assets (liabilities):

Cash

1,349

Account receivables and other receivables

761

Property and equipment

Trade payables and other payables

(1,054)

Deferred tax liabilities, net

(952)

Voxel8 Inc. [Member]

Tangible assets

Tangible assets, net

1,448

Customer Relationships [Member] | Hirsch [Member]

Tangible assets

Intangible assets

$ 890

^[1]

Intangible assets

5 years 10 months 24 days

^[1]

Technology [Member] | Customer Gateway [Member]

Tangible assets

Intangible assets

$ 5,116

Intangible assets

8 years

Non-Competition [Member] | Customer Gateway [Member]

Tangible assets

Intangible assets

$ 709

Intangible assets

3 years

Technology - Materials [Member] | Voxel8 Inc. [Member]

Tangible assets

$ 1,795

6 years 6 months

$ 8,981

Infinite

$ 14,991

Technology - Systems [Member] | Voxel8 Inc. [Member]

Tangible assets

Intangible assets

$ 1,767

Intangible assets

8 years 6 months

License [Member] | Voxel8 Inc. [Member]

Tangible assets

Intangible assets

$ 1,000

Intangible assets

8 years 6 months

[1]	Customer relationships represent the underlying relationships and agreements with Hirsch’s installed customer base and are amortized over the useful life of the agreements using the accelerated method.

Fair Value Measurements (Details) - Schedule of marketable securities - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Matures within one year:
Amortized cost	$ 177,949	$ 83,264
Gross unrealized gain	625	2,104
Gross unrealized loss	(1,189)	(14)
Fair value	177,385	85,354
Matures within one year: Corporate debentures [Member]
Matures within one year:
Amortized cost	25,430	13,106
Gross unrealized gain	170	210
Gross unrealized loss
Fair value	25,600	13,316
Matures within one year, Government debentures [Member]
Matures within one year:
Amortized cost	2,507	402
Gross unrealized gain	9
Gross unrealized loss
Fair value	2,516	402
Matures within one year [Member]
Matures within one year:
Amortized cost	27,937	13,508
Gross unrealized gain	179	210
Gross unrealized loss
Fair value	28,116	13,718
Matures after one year through four years: Corporate debentures [Member]
Matures within one year:
Amortized cost	140,364	63,611
Gross unrealized gain	435	1,815
Gross unrealized loss	(1,090)	(3)
Fair value	139,709	65,423
Matures after one year through four years: Government debentures [Member]
Matures within one year:
Amortized cost	9,648	6,145
Gross unrealized gain	11	79
Gross unrealized loss	(99)	(11)
Fair value	9,560	6,213
Matures after one year through four years [Member]
Matures within one year:
Amortized cost	150,012	69,756
Gross unrealized gain	446	1,894
Gross unrealized loss	(1,189)	(14)
Fair value	$ 149,269	$ 71,636

Property, Plant and Equipment, Net (Details) - Schedule of property, plant and equipment - USD ($)
$ in Thousands

Dec. 31, 2021

Dec. 31, 2020

Cost:

Property, plant and equipment, gross

$ 68,639

$ 48,196

Accumulated depreciation

(23,593)

(18,941)

Property, plant and equipment, net

45,046

29,255

Computer and peripheral equipment [Member]

Cost:

Property, plant and equipment, gross

8,092

4,720

Office furniture and equipment [Member]

Cost:

Property, plant and equipment, gross

3,268

2,233

Machinery and equipment [Member]

Cost:

Property, plant and equipment, gross

28,474

20,301

^[1]

Leasehold Improvements [Member]

Cost:

Property, plant and equipment, gross

16,061

8,627

Building and land [Member]

Cost:

Property, plant and equipment, gross

$ 12,744

$ 12,315

^[1]

[1]	Reclassified

Other Payables and Accrued Expenses (Details) - Schedule of Other Payable and Accrued Expenses - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Schedule of Other Payable and Accrued Expenses [Abstract]
Government authorities	$ 3,221	$ 902
Warranty provision	3,640	1,419
Provision for returns	2,178	1,759
Professional services	1,411	774
Accrued expenses	6,838	6,759
Other payables and accrued expenses, total	$ 17,288	$ 11,613

Consolidated Balance Sheets (Parentheticals) - ₪ / shares	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Ordinary shares, par value (in New Shekels per share)	₪ 0.01	₪ 0.01
Ordinary shares, shares authorized	200,000,000	200,000,000
Ordinary shares, shares issued	49,619,782	45,988,613
Ordinary shares, shares outstanding	49,619,782	45,988,613

Accumulated Other Comprehensive Income (Loss) (Details) - Schedule of accumulated balances other comprehensive income (Loss) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 2,733
Other comprehensive income before reclassifications	(2,008)
Amounts reclassified from accumulated other comprehensive income	(154)
Net current period other comprehensive income	(2,162)
Ending Balance	571
Unrealized Gains (losses) on marketable securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	1,933
Other comprehensive income before reclassifications	(2,423)
Amounts reclassified from accumulated other comprehensive income	(32)
Net current period other comprehensive income	(2,455)
Ending Balance	(522)
Foreign currency translation adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	800
Amounts reclassified from accumulated other comprehensive income
Net current period other comprehensive income
Ending Balance	800
Unrealized Gains (losses) on cash flow hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income before reclassifications	415
Amounts reclassified from accumulated other comprehensive income	(122)
Net current period other comprehensive income	293
Ending Balance	$ 293

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues:
Products	$ 282,637	$ 164,918	$ 156,594
Services	39,369	28,413	23,272
Total revenues	322,006	193,331	179,866
Cost of revenues:
Products	132,730	75,040	71,057
Services	37,365	30,490	26,733
Total cost of revenues	170,095	105,530	97,790
Gross profit	151,911	87,801	82,076
Operating expenses:
Research and development, net	43,729	31,464	22,407
Sales and marketing	58,752	36,405	33,573
General and administrative	36,637	26,661	18,498
Total operating expenses	139,118	94,530	74,478
Operating income (loss)	12,793	(6,729)	7,598
Finance income, net	2,599	3,498	3,313
Income (loss) before taxes on income (tax benefit)	15,392	(3,231)	10,911
Taxes on income (tax benefit)	(135)	1,552	744
Net income (loss)	$ 15,527	$ (4,783)	$ 10,167
Basic earnings (losses) per share (in Dollars per share)	$ 0.33	$ (0.11)	$ 0.27
Diluted earnings (losses) per share (in Dollars per share)	$ 0.32	$ (0.11)	$ 0.26

Shareholders' Equity

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

SHAREHOLDERS’ EQUITY

NOTE 10:-

SHAREHOLDERS’ EQUITY

Company’s shares:

Ordinary shares:

Any ordinary share confers equal rights to dividends and bonus shares, and to participate in the distribution of surplus assets upon liquidation in proportion to the par value of each share regardless of any premium paid thereon, all subject to the provisions of the Company’s articles of association. Each ordinary share confers its holder the right to participate the general meetings of the shareholders of the Company, with one vote on any matter presented to the shareholders.

On June 18, 2019, the Company closed a follow- on offering in which 4,991,000 ordinary shares were issued and sold to the public. The aggregate net proceeds received by the Company from the offering were $129,710, net of underwriting discounts, commissions and offering expenses.

On September 16, 2020, the Company closed a follow - on offering that had a secondary component. In the offering, the Company issued and sold to the public 2,999,999 ordinary shares for aggregate net proceeds of $161,981, net of underwriting discounts, commissions and offering expenses. In addition, in the secondary component of the offering, 1,689,942 ordinary shares that were issued pursuant to the exercise of warrants were sold by the Company’s global customer. The Company did not receive any of the proceeds from the sale of these additional ordinary shares.

On November 19, 2021, the Company closed a follow - on offering that had a secondary component. In the offering, the Company issued and sold to the public 2,336,892 ordinary shares for aggregate net proceeds of $339,760. In addition, in the secondary component of the offering, 705,953 ordinary shares that were issued pursuant to the exercise of warrants were sold by the Company’s global customer. The Company did not receive any of the proceeds from the sale of these additional ordinary shares.

Share option and RSU’s plans:

The Company’s Board of Directors has approved equity incentive plans pursuant to which the Company is authorized to issue to employees, directors and officers of the Company and its subsidiaries (the “optionees”) options to purchase ordinary shares of the company, at an exercise price equal to at least the fair market value of the ordinary shares at the date of grant. The terms of option grants generally provide that 25% of total options are exercisable one year after the grant or vesting start date determined for each optionee and a further 6.25% is exercisable at the end of each subsequent three-month period over the following 3 years. Options are exercisable for up to 10 years from the grant date. Options that are cancelled or forfeited before expiration become available for future grants.

Under the company equity incentive plans, beginning in 2017, the Company grants RSU’s, including performance based RSUs. The RSU’s generally vest over a period of four years of employment and performance based RSU’s also vest based on performance targets. RSU’s that are cancelled or forfeited become available for future grants.

During December 2021, the Company’s board of directors approved an increase of 1,488,107 as to the number of ordinary shares reserved for issuance under the Company’s equity incentive plans. As of December 31, 2021, an aggregate of 5,587,786 ordinary shares were available for future grants under those plans.

A summary of the Company’s share option activity and related information is as follows:

	Number of shares upon exercise			Weighted average exercise price		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value

Outstanding at beginning of year		686,456		$	18.66		6.87	$	48,375
Granted		5,005			125.25		-		-
Exercised		(254,308	)		19.12		-		27,181
Forfeited		(23,978	)		17.49		-		-

Outstanding at end of year		413,175		$	19.58		5.79	$	54,815

Exercisable at end of year		291,953		$	15.46		5.16	$	39,936

As of December 31, 2021, the Company had $1,685 of unrecognized compensation expense related to non-vested share options expected to be recognized over a weighted average period of 1.82 years.

The weighted average fair value of options granted during the years ended December 31, 2021, 2020 and 2019 was $64.93, $31.55 and $14.51 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $27,181, $12,698 and $6,742, respectively.

d. A summary of the Company’s RSU’s activity is as follows:

	Number of RSUs

Unvested at beginning of year		834,321
Granted		274,800
Vested		(334,016	)
Forfeited		(90,439	)

Unvested at the end of the year		684,666

The weighted average fair value at grant date of RSU’s granted for the years ended December 31, 2021, 2020 and 2019 was $115.65, $40.93 and $28.50, respectively. The total fair value of RSU’s vested during the year ended December 31, 2021, was $10,608.

The weighted average fair value of shares vested (upon settlement of RSUs) during the years 2021, 2020 and 2019 was $31.63, $24.52 and $19.53, respectively

As of December 31, 2021, the Company had $39,465 of unrecognized compensation expenses related to RSU’s, expected to be recognized over a weighted average period of 2.77 years.

The following table sets forth the total share-based compensation expense included in the consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019:

	Year ended December 31,
	2021		2020		2019

Cost of products	$	1,355	$	1,056	$	632
Cost of services		1,105		771		520
Research and development, net		2,685		1,712		1,294
Sales and marketing		5,004		2,893		1,689
General and administrative		4,984		3,604		2,479

Total share-based compensation expense	$	15,133	$	10,036	$	6,614

On January 10, 2017, the Company signed a master purchase agreement with Amazon Inc. under which 2,932,176 warrants to purchase ordinary shares of the Company at an exercise price of $13.04 were issued to Amazon as a customer incentive. The warrants are subject to vesting as a function of payments for purchased products and services of up to $150 million over a five years period beginning on May 1, 2016, with the shares vesting incrementally each time Amazon makes a payment totaling $5 million to the Company. On September 16, 2020 Amazon Inc. exercised 2,162,463 warrants via cashless exercise and sold all 1,689,942 shares received upon that exercise. On November 19, 2021 Amazon Inc. exercised 769,713 warrants via cashless exercise and sold all 705,701 shares received upon that exercise. As of December 31, 2021, all of the warrants under that original master purchase agreement had been exercised.

On September 14, 2020, the Company signed an amendment to the master purchase agreement with Amazon Inc. under which an additional 3,401,028 warrants to purchase ordinary shares of the Company at an exercise price of $59.26 were issued to Amazon as a customer incentive. The warrants are subject to vesting as a function of payments for purchased products and services of up to $400 million over a five year period beginning on January 2021, with the shares vesting incrementally each time Amazon makes a payment totaling $5 million to the Company. As of December 31, 2021, 660,773 warrants were exercisable under the amendment to the master purchase agreement.

The fair value of the warrants was measured on the grant date using the Monte Carlo simulation with assumptions of risk-free rate of 0.4%, volatility rate of 52%, dividend yield of 0% and expected term of 5.32 years.

The Company recognized a reduction to revenues of $25,423, $5,366 and $5,094 during the years ended December 31, 2021, 2020 and 2019, respectively in respect of the warrants granted to Amazon. The total unrecognized amount to be recognized as a reduction in revenues related to the warrants granted to Amazon amounted to $83,675 as of December 31, 2021.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
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+ Details

General (Details) - USD ($) $ in Thousands		1 Months Ended
General (Details) - USD ($) $ in Thousands	Aug. 10, 2021	Nov. 19, 2021
General (Details) [Line Items]
Total consideration	$ 14,991
Sale of ordinary shares issued		2,336,892
Aggregate net proceeds		$ 339,760
Secondary Component Offering [Member]
General (Details) [Line Items]
Sale of ordinary shares issued		705,953

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 12:-

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the year ended December 31, 2021:

	Unrealized Gains (losses) on marketable securities			Unrealized Gains (losses) on cash flow hedges			Foreign currency translation adjustment		Total

Beginning balance	$	1,933		$	-		$	800	$	2,733
Other comprehensive income before reclassifications		(2,423	)		415					(2,008	)
Amounts reclassified from accumulated other comprehensive income		(32	)		(122	)		-		(154	)

Net current period other comprehensive income		(2,455	)		293			-		(2,162	)

Ending Balance	$	(522	)	$	293		$	800	$	571

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

	December 31,
	2021		2020
Original amount:
Acquired technology	$	10,244	$	6,682
License		1,000		-
Customer relationships		3,504		3,504
Non-competition agreement		974		974
Software development costs		1,320		1,320
Distribution rights		380		250

	$	17,422	$	12,730
Accumulated amortization:
Acquired technology		2,355		1,424
License		46		-
Customer relationships		3,268		3,071
Non-competition agreement		596		360
Software development costs		844		404
Distribution rights		250		250

		7,359		5,509

Intangible assets, net	$	10,063	$	7,221

Schedule of future amortization expenses

Years Ending December 31,	Amount

2022	$	2,130
2023		1,599
2024		1,399
2025		1,246
2026		1,376
2027 and thereafter		2,313

	$	10,063

Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of deferred tax liabilities and assets

	December 31,
	2021			2020

Carryforward tax losses	$	4,426		$	1,688
Share-based compensation		934			695
Research and development expenses		2,666			1,933
Other temporary differences		2,320			1,840

Deferred tax assets		10,346			6,156

Deferred tax liability due to intangible assets		(1,007	)		(1,060	)

Deferred tax assets, net	$	9,339		$	5,096

Schedule of income (loss) before income taxex

	Year ended December 31,
	2021		2020			2019

Domestic	$	10,334	$	(6,926	)	$	7,343
Foreign		5,058		3,695			3,568

Income (loss) before income taxes	$	15,392	$	(3,231	)	$	10,911

Schedule of taxes on income (tax benefits)

	Year ended December 31,
	2021			2020		2019

Current taxes	$	(550	)	$	210	$	677
Deferred taxes		415			1,342		67

	$	(135	)	$	1,552	$	744

Domestic	$	322		$	1,360	$	(337	)
Foreign		(457	)		192		1,081

	$	(135	)	$	1,552	$	744

Schedule of taxes on income (tax benefits), domestic and foreign

	Year ended December 31,
	2021			2020			2019
Domestic taxes:

Current taxes	$	(1,171	)	$	16		$	(208	)
Deferred taxes		1,493			1,344			(129	)

		322			1,360			(337	)

Foreign taxes:

Current taxes		621			194			885
Deferred taxes		(1,078	)		(2	)		196

		(457	)		192			1,081

Taxes on income	$	(135	)	$	1,552		$	744

Schedule of unrecognized tax benefits

	December 31,
	2021			2020

Beginning of year	$	4,357		$	3,039
Additions related to tax positions taken during current year		613
Additions related to tax positions taken during prior years		-			1,318
Reduction related to settlements of tax matters		(1,286	)		-
Reductions for tax positions of prior years		(2,650	)


Balance at December 31(*)	$	1,034		$	4,357

Schedule of effective income tax rate reconciliation

	Year ended December 31,
	2021			2020			2019

Income (loss) before taxes, as reported in the consolidated statements of operations	$	15,392		$	(3,231	)	$	10,911

Theoretical tax expense (benefit) at the Israeli statutory tax rate		3,540			(741	)		2,510
Tax adjustment in respect of different tax rate of foreign subsidiaries		309			(94	)		151
Non-deductible expenses and other permanent differences		(1,808	)		(278	)		77
Stock based compensation		355			1,485			1,247
Beneficiary enterprise benefits (*)		(560	)		(68	)		(3,935	)
Increase (decrease) in other uncertain tax positions		(2,037	)		1,318			713
Other		66			(70	)		(19	)

Actual tax expense (benefit)	$	(135	)	$	1,552		$	744

(*) Basic and diluted earnings per share amounts of the benefit resulting from the “Beneficiary Enterprise” status		0.01			0.00			0.10

Earnings (Losses) Per Share (Details) - Schedule of basic and diluted earnings (losses) per share - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator for basic and diluted earnings (losses) per share:
Net income (loss) (in Dollars)	$ 15,527	$ (4,783)	$ 10,167
Weighted average ordinary shares outstanding:
Denominator for basic earnings (losses) per share	47,079,358	42,286,275	38,079,394
Effect of dilutive securities:
Employee share options, RSUs, PSUs and Warrants	1,520,737		1,214,721
Denominator for diluted earnings (losses) per share	48,600,095	42,286,275	39,294,115
Basic earnings (losses) per share (in Dollars per share)	$ 0.33	$ (0.11)	$ 0.27
Diluted earnings (losses) per share (in Dollars per share)	$ 0.32	$ (0.11)	$ 0.26

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

Taxes on Income (Details) - Schedule of deferred tax liabilities and assets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Schedule of deferred tax liabilities and assets [Abstract]
Carryforward tax losses	$ 4,426	$ 1,688
Share-based compensation	934	695
Research and development expenses	2,666	1,933
Other temporary differences	2,320	1,840
Deferred tax assets	10,346	6,156
Deferred tax liability due to intangible assets	(1,007)	(1,060)
Deferred tax assets, net	$ 9,339	$ 5,096

Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Significant Accounting Policies [Abstract]
Description of debt maturity date	original maturity of more than three months but less than one year from the date of acquisition.
Inventory write off	$ 4,909	$ 5,000	$ 2,624
Lease term	98 years
Provisions for estimated sales returns	$ 2,178	1,759
Contract Liabilities	5,564	$ 27,156
Recognized revenues	$ 26,248
Sales by revenues percentage	13.00%	14.00%	30.00%
Revenues from shipping	$ 3,985	$ 3,450	$ 1,639
Percentage of exercise factor	150.00%
Percentage of share-based compensation to other employees	100.00%
Fair value of outstanding forward and option	$ 317	0
Advertising costs	$ 2,691	2,273	1,981
Tax benefit settlement percentage	50.00%
Sold trade receivables	$ 1,387
Financial expenses related to its factoring	$ 66
Monthly deposits rate	8.33%
Severance expenses	$ 2,895	$ 2,250	$ 1,808
Anti-dilutive excluded from calculation of diluted net earnings (in Shares)	5,005	20,443	536,359

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Measurement of operating lease liabilities	$ 5,490	$ 4,635	$ 3,910
Leases, description	The Company’s operating lease agreements have remaining lease terms ranging from one year to nine years, some of these agreements include allowances, for the Company to extend the leases for an additional terms, of up to five years.
Weighted average remaining lease term	7 years 8 months 12 days
Weighted average discount rate	2.70%
Operating lease, description	the Company has an operating lease that has not yet commenced, with a lease obligation of approximately $ 4,071 for new offices. The operating lease will commence in 2022 with a lease term of nine years, including an option for a five year extension.

Significant Accounting Policies (Details) - Schedule of changes in liability for product warranty - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Schedule of changes in liability for product warranty [Abstract]
Balance at beginning	$ 1,650	$ 1,614
Provision for warranties issued during the year	8,897	3,287
Reduction for payments and costs to satisfy claims	(5,935)	(3,251)
Balance at ending	$ 4,612	$ 1,650

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

NOTE 13:-

LEASES

The Company’s leases include offices and warehouses for its facilities worldwide, as well as car leases, which are all classified as operating leases. Certain leases include renewal options that are subject to the Company’s sole discretion. The renewal options were included in the right of use (“ROU”) and liability calculation if it was reasonably certain that the Company will exercise the option.

The components of lease expense for the years ended December 31, 2021 and 2020 were as follows:

	Year ended December 31,
	2021		2020		2019

Operating lease	$	5,085	$	4,544	$	3,857
Short-term lease		264		34		131

Total lease expense	$	5,085	$	4,578	$	3,988

Cash paid for amounts included in the measurement of operating lease liabilities was $5,490, $4,635 and $3,910 during the years ended December 31, 2021 , 2020 and 2019 respectively.

The Company’s operating lease agreements have remaining lease terms ranging from one year to nine years, some of these agreements include allowances, for the Company to extend the leases for an additional terms, of up to five years.

As of December 31, 2021, the weighted average remaining lease term is approximately 7.7 years, and the weighted average discount rate is 2.7 percent. The discount rate was determined based on the estimated collateralized borrowing rate of the Company, adjusted to the specific lease term and location of each lease.

Maturities of operating lease liabilities as of December 31, 2021 were as follows:


2022	$	5,704
2023		4,446
2024		4,015
2025		3,271
2026 and after		12,353

Total operating lease payments	$	29,789

Less - imputed interest		2,831

Present value of lease liabilities	$	26,958

As of December 31, 2021 the Company has an operating lease that has not yet commenced, with a lease obligation of approximately $ 4,071 for new offices. The operating lease will commence in 2022 with a lease term of nine years, including an option for a five year extension.

Fair Value Measurements (Details) - Schedule of assets and liabilities measured at fair value - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets:
Marketable securities	$ 177,385	$ 85,354
Foreign currency derivative contracts	317
Total financial assets	177,702	85,354
Level 1 [Member]
Assets:
Marketable securities
Foreign currency derivative contracts
Total financial assets
Level 2 [Member]
Assets:
Marketable securities	177,385	85,354
Foreign currency derivative contracts	317
Total financial assets	177,702	85,354
Level 3 [Member]
Assets:
Marketable securities
Foreign currency derivative contracts
Total financial assets

Taxes on Income

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

TAXES ON INCOME

NOTE 14:-

TAXES ON INCOME

Tax rates:

Taxable income of the Company and its Israeli subsidiary is subject to Israeli corporate tax at the rate of 23% 2021, 2020 and 2019.

Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Law”):

The Company’s production facilities in Israel have been granted “Beneficiary Enterprise” status under the Law. The Company and its Israeli subsidiary have been granted benefits under the “Alternative Benefit Track” under which the main benefits are a tax exemption for undistributed income and a reduced tax rate.

The Company and its Israeli subsidiary began to utilize such tax benefits in 2010. The entitlement to the above benefits was limited to the end of 2019, and was conditional upon the Company and its Israeli subsidiary fulfilling the conditions stipulated by the Law and related regulations. In the event of failure to comply with these conditions, the benefits may be partially or fully canceled and the Company or its Israeli subsidiary may be required to refund the amount of the benefits, in whole or in part, plus a consumer price index linkage adjustment and interest.

In the event of distribution of any dividends, the amount distributed which is allocated to the above mentioned tax exempt income, on a prorate basis, will be subject to the same reduced corporate tax rate that would have been applied to the Beneficiary Enterprise’s income.

In addition, tax-exempt income attributed to the Beneficiary Enterprise will subject the Company to taxes upon distribution in any manner including complete liquidation.

The Company does not intend to distribute any amounts of its undistributed tax-exempt income as a dividend. The Company and its board of directors intend to reinvest its tax-exempt income and not to distribute such income as a dividend in the foreseeable future. Accordingly, no deferred income taxes have been provided on income attributable to the Company’s Beneficiary Enterprise programs as the undistributed tax-exempt income is essentially permanently designated for reinvestment.

As of December 31, 2021, tax-exempt income of $146,398 is attributable to the Company’s and its Israeli subsidiary’s various Beneficiary Enterprise programs. If such tax-exempt income is distributed, it would be taxed at the reduced corporate tax rate applicable to such income, and $36,599 of additional taxes would be incurred as of December 31, 2021.

The Company’s Israeli subsidiary elected to apply the Preferred Enterprise regime under the January 2011 amendment to the Law as of the 2013 tax year. The election is irrevocable. Under the Preferred Enterprise regime, a preferred income of an Enterprise located in the center of Israel is subject to the tax rate of 16%.

The 2017 Amendment provides that a technology company satisfying certain conditions will qualify as a Preferred Technology Enterprise and will thereby enjoy a reduced corporate tax rate of 12% on income that qualifies as “Preferred Technology Income”, as defined in the Investment Law. The tax rate is further reduced to 7.5% for a Preferred Technology Enterprise located in development zone A. These corporate tax rates shall apply only with respect to the portion of the Preferred Technology Income derived from R&D developed in Israel. In addition, a Preferred Technology Company will enjoy a reduced corporate tax rate of 12% on capital gain derived from the sale of certain “Benefitted Intangible Assets” (as defined in the Investment Law) to a related foreign company if the Benefitted Intangible Assets were acquired from a foreign company on or after January 1, 2017 for at least NIS 200 million, and the sale receives prior approval from the National Authority for Technological Authority (previously known as the Israeli Office of the Chief Scientist), referred to as the Innovation Authority.

Dividends distributed by a Preferred Technology Enterprise, paid out of Preferred Technology Income, are generally subject to withholding tax at source at the rate of 20% or such lower rate as may be provided in an applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). However, if such dividends are paid to an Israeli company, no tax is required to be withheld (although, if such dividends are subsequently distributed from such Israeli company to individuals or a non-Israeli company, withholding tax at a rate of 20% or such lower rate as may be provided in an applicable tax treaty will apply).

The Company and its Israeli subsidiary believe they meet the conditions for “Preferred Technological Enterprises”, and are subject to a tax rate of 12% on income that qualifies as “Preferred Technology Income”, as defined in the Law. The tax rate for a Preferred Technological Enterprises located in development zone A is 7.5%.

From time to time, the Israeli Government discusses reducing the benefits available to companies under the Law. The termination or substantial reduction of any of the benefits available under the Law could materially increase the Company’s tax liabilities.

Tax benefits under the Israeli Law for the Encouragement of Industry (Taxation), 1969:

Each of the Company and its Israeli subsidiary is an “Industrial Company” as defined by the Israeli Law for the Encouragement of Industry (Taxation), 1969, and, as such, is entitled to certain tax benefits including accelerated depreciation, deduction of public offering expenses in three equal annual installments and amortization of other intangible property rights for tax purposes. In addition, these Israeli companies are eligible to submit consolidated tax returns, allowing the offsetting of losses between the entities.

Income taxes of non-Israeli subsidiaries:

The Company’s non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of formation.

Taxes were not provided for undistributed earnings of the Company’s foreign subsidiaries. The Company’s board of directors has determined that the Company does not currently intend to distribute any amounts of its undistributed earnings as a dividend. The Company intends to reinvest these earnings indefinitely in the foreign subsidiaries. Accordingly, no deferred income taxes have been provided. If these earnings were distributed into Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes.

The amount of undistributed earnings of foreign subsidiaries that are considered to be reinvested as of December 31, 2021 was $18,213. If these undistributed earnings are distributed, they would be taxed at the corporate tax rate applicable to such income, and $1,796 of additional taxes would be incurred as of December 31, 2021.

Tax assessments:

The Company and its Israeli subsidiary received final tax assessments through 2019. The Company’s U.S and German subsidiaries received final tax assessments through 2014 and 2016, respectively, and the Company’s Hong Kong, UK and Japan subsidiaries have not received a final tax assessment since inception.

Carryforward losses for tax purposes:

Carryforward operating tax losses of the Company and its subsidiaries total approximately $57,025 as of December 31, 2021 and may be used indefinitely.

Deferred income taxes:

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s and its subsidiaries’ deferred tax liabilities and assets are as follows:

	December 31,
	2021			2020

Carryforward tax losses	$	4,426		$	1,688
Share-based compensation		934			695
Research and development expenses		2,666			1,933
Other temporary differences		2,320			1,840

Deferred tax assets		10,346			6,156

Deferred tax liability due to intangible assets		(1,007	)		(1,060	)

Deferred tax assets, net	$	9,339		$	5,096

The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. As of each reporting date, management considers new evidence, both positive and negative, that could impact management’s view with regards to the future realization of deferred tax assets for each jurisdiction.

Income (loss) before income taxes is comprised as follows:

	Year ended December 31,
	2021		2020			2019

Domestic	$	10,334	$	(6,926	)	$	7,343
Foreign		5,058		3,695			3,568

Income (loss) before income taxes	$	15,392	$	(3,231	)	$	10,911

Taxes on income (tax benefits) are comprised as follows:.

	Year ended December 31,
	2021			2020		2019

Current taxes	$	(550	)	$	210	$	677
Deferred taxes		415			1,342		67

	$	(135	)	$	1,552	$	744

Domestic	$	322		$	1,360	$	(337	)
Foreign		(457	)		192		1,081

	$	(135	)	$	1,552	$	744

	Year ended December 31,
	2021			2020			2019
Domestic taxes:

Current taxes	$	(1,171	)	$	16		$	(208	)
Deferred taxes		1,493			1,344			(129	)

		322			1,360			(337	)

Foreign taxes:

Current taxes		621			194			885
Deferred taxes		(1,078	)		(2	)		196

		(457	)		192			1,081

Taxes on income	$	(135	)	$	1,552		$	744

Uncertain tax positions:

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

	December 31,
	2021			2020

Beginning of year	$	4,357		$	3,039
Additions related to tax positions taken during current year		613
Additions related to tax positions taken during prior years		-			1,318
Reduction related to settlements of tax matters		(1,286	)		-
Reductions for tax positions of prior years		(2,650	)


Balance at December 31(*)	$	1,034		$	4,357

(*) As of December 31, 2021, and 2020 unrecognized tax benefit in an amount of $788 and $4,357, respectively, was presented as a reduction from deferred taxes.

The entire amount of the unrecognized tax benefits could affect the Company’s income tax provision and the effective tax rate.

Exchange rate differences are recorded within financial income, net, while interest is recorded within income tax expense.

The Company believes that it has adequately provided for any reasonably foreseeable outcome related to tax audits and settlement. The final tax outcome of its tax audits could be different from that which is reflected in the Company’s income tax provisions and accruals. Such differences could have a material effect on the Company’s income tax provision and net income in the period in which such determination is made.

A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company and the actual tax expense as reported in the statement of operations is as follows:

	Year ended December 31,
	2021			2020			2019

Income (loss) before taxes, as reported in the consolidated statements of operations	$	15,392		$	(3,231	)	$	10,911

Theoretical tax expense (benefit) at the Israeli statutory tax rate		3,540			(741	)		2,510
Tax adjustment in respect of different tax rate of foreign subsidiaries		309			(94	)		151
Non-deductible expenses and other permanent differences		(1,808	)		(278	)		77
Stock based compensation		355			1,485			1,247
Beneficiary enterprise benefits (*)		(560	)		(68	)		(3,935	)
Increase (decrease) in other uncertain tax positions		(2,037	)		1,318			713
Other		66			(70	)		(19	)

Actual tax expense (benefit)	$	(135	)	$	1,552		$	744

(*) Basic and diluted earnings per share amounts of the benefit resulting from the “Beneficiary Enterprise” status		0.01			0.00			0.10

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Section 50
-Paragraph 17
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Significant Accounting Policies (Details) - Schedule of revenue disaggregated by revenue source - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Systems [Member]
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by revenue source [Line Items]
Total revenue	$ 181,445	$ 87,769	$ 91,353
Ink and consumables [Member]
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by revenue source [Line Items]
Total revenue	101,192	77,149	65,241
Service - spare parts [Member]
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by revenue source [Line Items]
Total revenue	21,936	17,521	16,884
Service contracts and software subscriptions [Member]
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by revenue source [Line Items]
Total revenue	17,433	10,892	6,388
Total revenue [Member]
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by revenue source [Line Items]
Total revenue	$ 322,006	$ 193,331	$ 179,866

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.5-03(1))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

+ Details

Intangible Assets, Net

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET

NOTE 7:-

INTANGIBLE ASSETS, NET

Intangible assets are comprised of the following:

	December 31,
	2021		2020
Original amount:
Acquired technology	$	10,244	$	6,682
License		1,000		-
Customer relationships		3,504		3,504
Non-competition agreement		974		974
Software development costs		1,320		1,320
Distribution rights		380		250

	$	17,422	$	12,730
Accumulated amortization:
Acquired technology		2,355		1,424
License		46		-
Customer relationships		3,268		3,071
Non-competition agreement		596		360
Software development costs		844		404
Distribution rights		250		250

		7,359		5,509

Intangible assets, net	$	10,063	$	7,221

Amortization expenses for the years ended December 31, 2021, 2020 and 2019 were $1,850, $1,219 and $856, respectively.

Amortization expenses for future the years is as shown below:

Years Ending December 31,	Amount

2022	$	2,130
2023		1,599
2024		1,399
2025		1,246
2026		1,376
2027 and thereafter		2,313

	$	10,063

Selected Statements of Operations Data (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Statement [Abstract]

Schedule of financial income, net

	Year ended December 31,
	2021			2020			2019
Financial income:

Interest on bank deposits and other	$	2,129		$	2,238		$	2,535
Realized gain on sale of marketable securities, net		32			503			271
Interest on marketable securities		3,243			2,870			1,975
Amortization of premium and accretion of discount on marketable securities, net		-			-			112

		5,404			5,611			4,893
Financial expenses:

Bank charges		(286	)		(357	)		(405	)
Exchange rate differences, net		(1,240	)		(1,361	)		(1,175	)
Amortization of premium and accretion of discount on marketable securities, net		(1,279	)		(395	)		-

		(2,805	)		(2,113	)		(1,580	)

Total financial income, net:	$	2,599		$	3,498		$	3,313

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of marketable securities

	December 31, 2021
	Amortized cost		Gross unrealized gain		Gross unrealized loss			Fair value
Matures within one year:
Corporate debentures	$	25,430	$	170	$	-		$	25,600
Government debentures		2,507		9		-			2,516

		27,937		179		-			28,116
Matures after one year through four years:
Corporate debentures		140,364		435		(1,090	)		139,709
Government debentures		9,648		11		(99	)		9,560

		150,012		446		(1,189	)		149,269

Total	$	177,949	$	625	$	(1,189	)	$	177,385

	December 31, 2020
	Amortized Cost		Gross unrealized gain		Gross unrealized loss			Fair value
Matures within one year:
Corporate debentures	$	13,106	$	210	$	-		$	13,316
Government debentures		402		-		-			402

		13,508		210		-			13,718
Matures after one year through four years:
Corporate debentures		63,611		1,815		(3	)		65,423
Government debentures		6,145		79		(11	)		6,213

		69,756		1,894		(14	)		71,636

Total	$	83,264	$	2,104	$	(14	)	$	85,354

Schedule of investments with continuous unrealized losses

	December 31, 2021
	Less than 12 months					More than 12 months					Total
	Fair Value		Unrealized Losses			Fair value		Unrealized losses			Fair value		Unrealized losses

Corporate debentures	$	114,199	$	(1,075	)	$	1,063	$	(15	)	$	115,262	$	(1,090	)
Government debentures		6,524		(91	)		2,253		(8	)		9,047		(99	)

Total	$	120,723	$	(1,166	)	$	3,586	$	(23	)	$	124,309	$	(1,189	)

	December 31, 2020
	Less than 12 months					More than 12 months				Total
	Fair value		Unrealized Losses			Fair value		Unrealized losses		Fair value		Unrealized losses

Corporate debentures	$	3,821	$	(3	)	$	-	$	-	$	3,821	$	(3	)
Government debentures		3,002		(11	)		-		-		3,002		(11	)

Total	$	6,823	$	(14	)	$	-	$	-	$	6,823	$	(14	)

Schedule of assets and liabilities measured at fair value

	December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	-	$	177,385	$	-	$	177,385
Foreign currency derivative contracts		-		317		-		317

Total financial assets	$	-	$	177,702	$	-	$	177,702

	December 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	-	$	85,354	$	-	$	85,354

Total financial assets	$	-	$	85,354	$	-	$	85,354

Intangible Assets, Net (Details) - USD ($) $ in Thousands	12 Months Ended
Intangible Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expenses	$ 1,850	$ 1,219	$ 856

Earnings (Losses) Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of basic and diluted earnings (losses) per share

	Year ended December 31,
	2021		2020			2019
Numerator for basic and diluted earnings (losses) per share:

Net income (loss)	$	15,527	$	(4,783	)	$	10,167

Weighted average ordinary shares outstanding:

Denominator for basic earnings (losses) per share		47,079,358		42,286,275			38,079,394
Effect of dilutive securities:
Employee share options, RSUs, PSUs and Warrants		1,520,737		-			1,214,721

Denominator for diluted earnings (losses) per share		48,600,095		42,286,275			39,294,115

Basic earnings (losses) per share	$	0.33	$	(0.11	)	$	0.27

Diluted earnings (losses) per share	$	0.32	$	(0.11	)	$	0.26

Intangible Assets, Net (Details) - Schedule of future amortization expenses $ in Thousands	Dec. 31, 2021 USD ($)
Schedule of future amortization expenses [Abstract]
2022	$ 2,130
2023	1,599
2024	1,399
2025	1,246
2026	1,376
2027 and thereafter	2,313
Total	$ 10,063

Acquisitions

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

ACQUISITIONS

NOTE 3:-

ACQUISITIONS

Hirsch:

On February 7, 2019 (the “Closing Date”), the Company, through its wholly owned subsidiary Kornit Digital North America Inc., acquired the business and certain assets of Hirsch Solutions Inc., (“Hirsch”) its distributor in North America. Under the related acquisition agreement, the total consideration of $4,715 was paid at the closing date. In addition, the Company incurred acquisition-related costs in a total amount of $85. Acquisition-related costs include legal, accounting, consulting fees and other external costs directly related to the acquisition.

The main reasons for this acquisition were to improve connectivity with customers by expanding its leadership position in the digital textile market as well as providing direct access to a large number of traditional screen-printing customers.

Purchase price allocation:

Under business combination accounting principles, the total purchase price was allocated to Hirsch’s net tangible and intangible assets based on their estimated fair values as set forth below. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill.

The purchase price allocation for the acquisition was determined as follows:

	Fair value		Amortization period (years)
Tangible assets
Inventory	$	3,353

Intangible assets:
Customer relationships *)		890		5.9
Goodwill		471		Infinite

Total purchase price	$	4,715

(*)	Customer relationships represent the underlying relationships and agreements with Hirsch’s installed customer base and are amortized over the useful life of the agreements using the accelerated method.

In performing the purchase price allocation, the Company considered, among other factors, analysis of historical financial performance, the best use of the acquired assets and estimates of future performance of Hirsch’s installed base. In its allocation, applying the market participant approach, the Company determined the fair value of the acquired inventory based on estimated selling price adjusted for cost of selling efforts and a reasonable profit allowance and the acquired customer relationships based on their future expected cash flows.

Pro forma results of operations related to this acquisition have not been prepared because the acquisition is not material to the Company’s consolidated statements of operations.

Custom Gateway:

On August 7, 2020, the Company, through its wholly owned subsidiary Kornit Digital United Kingdom, acquired all the outstanding shares of Custom Gateway, a leading global provider of cloud-based software workflow solutions for both B2B and B2C business models. Under the related acquisition agreement, the total consideration was $16,884. In addition, the Company incurred acquisition-related costs in a total amount of $648. Acquisition-related costs included legal, accounting, consulting fees and other external costs related to the acquisition.

Custom Gateway offers a cloud-based platform that enables content sourcing, creation, management and display at the front end. An order management system captures orders and uses proprietary algorithms to direct them to the appropriate production site. On the production floor, orders are routed and managed to facilitate efficient on-demand production on a mass scale. The technology enables customers to realize the full efficiency, scalability and profitability benefits of digitization by seamlessly connecting the front end, whether online or storefront, to the most suitable back-end element, such as on-demand production and logistics operations.

The Company believes this acquisition will strategically accelerate its broad-scale development effort and strengthen its value proposition for brands, retailers and fulfillers in the area of digital transformation. The Company expects the combination of the Custom Gateway software workflow portfolio with its existing and future technologies to bring to the market an end-to-end solution for on-demand production.

The purchase price allocation for the acquisition has been determined as follows:

	Fair value			Amortization period (years)
Tangible assets (liabilities):
Cash	$	1,349
Account receivables and other receivables		761
Property and equipment		53
Trade payables and other payables		(1,054	)
Deferred tax liabilities, net		(952	)

Intangible assets:
Technology		5,116			8
Non-competition		709			3
Goodwill		10,902			Infinite

Total purchase price	$	16,884

Pro forma results of operations related to this acquisition have not been prepared because the acquisition is not material to the Company’s consolidated statements of operations.

Voxel8 Inc.

On August 10, 2021, the Company consummated the acquisition, pursuant to an asset purchase agreement, of certain assets of Voxel8 Inc., an advanced additive manufacturing technology for textiles, which allows for digital fabrication of functional features with zonal control of material properties, in addition to utilizing high-performance elastomers adhering to inkjet technology. Under the agreement, the Company purchased the associated assets for a total consideration of $14,991 in cash.

In addition, the Company incurred acquisition-related costs in a total amount of $212. Acquisition-related costs included legal, accounting, consulting fees and other external costs related to the acquisition. These transaction costs were included in general and administrative expenses in the consolidated statements of operations.

The main reasons for this acquisition were to strengthen the Company’s ability to explore potential existing and new lucrative markets such as functional apparel and footwear, as well as to be able to offer versatility of decorative capabilities enabling the production of various functional applications on textile substrates.

The Voxel8 acquisition was accounted for as a business combination in accordance with ASC 805 “Business Combinations”. Under business combination accounting principles, the total purchase price was allocated to Voxel8’s net tangible and intangible assets based on their estimated fair values as set forth below. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill which is deductible for tax purposes,

The following table summarizes the purchase price allocation for Voxel8 Acquisition:

	Fair value		Amortization period (years)

Tangible assets, net	$	1,448

Intangible assets:
Technology - materials		1,795		6.5
Technology - systems		1,767		8.5
License		1,000		8.5
Goodwill		8,981		Infinite

Total purchase price	$	14,991

Pro forma results of operations related to this acquisition have not been prepared because the acquisition is not material to the Company’s consolidated statements of operations.

Shareholders' Equity (Details) - Schedule of share based compensation expense - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items]
Total share-based compensation expense	$ 15,133	$ 10,036	$ 6,614
Cost of products [Member]
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items]
Total share-based compensation expense	1,355	1,056	632
Cost of services [Member]
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items]
Total share-based compensation expense	1,105	771	520
Research and development, net [Member]
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items]
Total share-based compensation expense	2,685	1,712	1,294
Sales and marketing [Member]
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items]
Total share-based compensation expense	5,004	2,893	1,689
General and administrative [Member]
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items]
Total share-based compensation expense	$ 4,984	$ 3,604	$ 2,479

Property, Plant and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment

	December 31,
	2021			2020
Cost:

Computer and peripheral equipment	$	8,092		$	4,720
Office furniture and equipment		3,268			2,233
Machinery and equipment		28,474			*20,301
Leasehold improvements		16,061			8,627
Building and land		12,744			*12,315

		68,639			48,196

Accumulated depreciation		(23,593	)		(18,941	)

Property, plant and equipment, net	$	45,046		$	29,255

* Reclassified

Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
US [Member]
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items]
Total revenue	$ 211,294	$ 124,375	$ 100,457
EMEA [Member]
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items]
Total revenue	78,686	45,859	48,810
Asia Pacific [Member]
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items]
Total revenue	23,341	14,211	22,101
Other [Member]
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items]
Total revenue	8,685	8,886	8,498
Total revenue [Member]
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items]
Total revenue	$ 322,006	$ 193,331	$ 179,866

- Definition

+ References

+ Details

Acquisitions (Details) - USD ($) $ in Thousands	Aug. 10, 2021	Aug. 07, 2020	Feb. 07, 2019
Kornit Digital North America Inc. [Member]
Acquisitions (Details) [Line Items]
Total consideration			$ 4,715
Acquisition related costs			$ 85
Custom Gateway [Member]
Acquisitions (Details) [Line Items]
Total consideration		$ 16,884
Acquisition related costs		$ 648
Voxel8 Inc. [Member]
Acquisitions (Details) [Line Items]
Total consideration	$ 14,991
Acquisition related costs	$ 212

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory delivered to customers	$ 654	$ 10,628

Geographic Information (Details)	12 Months Ended
Geographic Information (Details)	Dec. 31, 2021
Segment Reporting [Abstract]
Total revenues, percentage	10.00%

Intangible Assets, Net (Details) - Schedule of intangible assets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Original amount:
Original amount	$ 17,422	$ 12,730
Accumulated amortization:
Accumulated amortization	7,359	5,509
Intangible assets, net	10,063	7,221
Acquired technology [Member]
Original amount:
Original amount	10,244	6,682
Accumulated amortization:
Accumulated amortization	2,355	1,424
License [Member]
Original amount:
Original amount	1,000
Accumulated amortization:
Accumulated amortization	46
Customer relationships [Member]
Original amount:
Original amount	3,504	3,504
Accumulated amortization:
Accumulated amortization	3,268	3,071
Non-competition agreement [Member]
Original amount:
Original amount	974	974
Accumulated amortization:
Accumulated amortization	596	360
Software development costs [Member]
Original amount:
Original amount	1,320	1,320
Accumulated amortization:
Accumulated amortization	844	404
Distribution rights [Member]
Original amount:
Original amount	380	250
Accumulated amortization:
Accumulated amortization	$ 250	$ 250

Inventories (Details) - Schedule of inventories - USD ($)
$ in Thousands

Dec. 31, 2021

Dec. 31, 2020

Schedule of inventories [Abstract]

Raw materials and components

$ 29,857

$ 18,026

Finished products

^[1]

33,159

34,461

Inventories, total

$ 63,017

$ 52,487

[1]	Includes amounts of $654 and $10,628 as of December 31, 2021 and 2020, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ 15,527	$ (4,783)	$ 10,167
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	7,096	4,711	4,441
Fair value of warrants deducted from revenues	25,423	5,366	5,094
Share based compensation	15,133	10,036	6,614
Amortization of premium and accretion of discount on marketable securities, net	1,279	395	(112)
Realized loss (gain) on sale of marketable securities	(32)	(503)	(271)
Change in operating assets and liabilities:
Trade receivables, net	1,782	(9,529)	(18,617)
Inventory	(14,079)	(15,827)	(4,183)
Deposits and long-term assets	(110)	54	386
Other accounts receivables and prepaid expenses	(4,134)	(2,333)	(1,204)
Deferred taxes	(2,064)	2,177	(5)
Operating lease right-of-use assets and liabilities, net	211	1,265	327
Trade payables	12,865	6,864	6,032
Employees and payroll accruals	9,698	6,366	1,423
Deferred revenues and advances from customers	(21,668)	24,286	(921)
Other payables and accrued expenses	5,648	4,822	1,708
Accrued severance pay, net	309	143	26
Other long-term liabilities	760	(877)	(136)
Loss from sale and disposal of property, plant and equipment		139	23
Foreign currency translation gain (loss) on intercompany balances with foreign subsidiaries		(362)	212
Net cash provided by operating activities	53,644	32,410	11,004
Cash flows from investing activities:
Purchase of property, plant and equipment	(14,477)	(13,489)	(5,416)
Acquisition of intangible assets and capitalization of software development costs	(130)	(121)	(1,337)
Proceeds from sale of property, plant and equipment		4	3
Investing in equity securities	(351)
Cash paid in connection with acquisition, net of cash acquired	(14,991)	(15,535)	(4,715)
Proceeds from (Investment in) short-term bank deposits, net	215,636	(129,804)	(90,000)
Proceeds from sale marketable securities	1,000	58,532	34,497
Proceeds from maturity of marketable securities	13,526	21,706	3,000
Investment in marketable securities	(110,458)	(35,923)	(115,529)
Net cash provided by (used in) investing activities	89,755	(114,630)	(179,497)
Cash flows from financing activities:
Proceeds from public offering, net of issuance costs	339,760	161,981	129,710
Exercise of employee stock options	4,850	5,660	5,901
Payments related to shares withheld for taxes	(2,235)	(596)	(177)
Payment of contingent consideration			(303)
Net cash provided by financing activities	342,375	167,045	135,131
Foreign currency translation adjustments on cash and cash equivalents		209	(27)
Increase (decrease) in cash and cash equivalents	485,774	85,034	(33,389)
Cash and cash equivalents at the beginning of the period	125,777	40,743	74,132
Cash and cash equivalents at the end of the period	611,551	125,777	40,743
Supplemental disclosure of cash flow information
Cash paid during the year for income taxes	435	1,028	353
Non-cash investing and financing activities:
Property, plant and equipment acquired by credit	2,461	1,904	920
Property and equipment transferred to be used as inventory		115
Inventory transferred to be used as property, plant and equipment	3,572	990
Lease liabilities arising from obtaining right-of-use assets	$ 5,688	$ 2,929	$ 9,640

Shareholders' Equity (Details) - Schedule of share option activity and related information $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) $ / shares shares
Schedule of share option activity and related information [Abstract]
Number of shares upon exercise, Outstanding, Beginning balance \| shares	686,456
Weighted average exercise price Outstanding, Beginning balance \| $ / shares	$ 18.66
Weighted- average remaining contractual term (in years)	6 years 10 months 13 days
Aggregate intrinsic value Outstanding, Beginning balance \| $	$ 48,375
Number of shares upon exercise, Outstanding, Ending balance \| shares	413,175
Weighted average exercise price, Outstanding, Ending balance \| $ / shares	$ 19.58
Weighted- average remaining contractual term (in years), Outstanding, Ending balance	5 years 9 months 14 days
Aggregate intrinsic value, Outstanding, Ending balance \| $	$ 54,815
Number of shares upon exercise, Exercisable \| shares	291,953
Weighted average exercise price, Exercisable \| $ / shares	$ 15.46
Weighted- average remaining contractual term (in years), Exercisable	5 years 1 month 28 days
Aggregate intrinsic value, Exercisable \| $	$ 39,936
Number of shares upon exercise, Granted \| shares	5,005
Weighted average exercise price, Granted \| $ / shares	$ 125.25
Weighted-Average Remaining Contractual Term (in years), Granted
Aggregate intrinsic value, Granted \| $
Number of shares upon exercise, Exercised \| shares	(254,308)
Weighted average exercise price, Exercised \| $ / shares	$ 19.12
Weighted-Average Remaining Contractual Term (in years), Exercised
Aggregate intrinsic value, Exercised \| $	$ 27,181
Number of shares upon exercise, Forfeited \| shares	(23,978)
Weighted average exercise price, Forfeited \| $ / shares	$ 17.49
Weighted-Average Remaining Contractual Term (in years), Forfeited
Aggregate intrinsic value, Forfeited \| $

Taxes on Income (Details) - Schedule of effective income tax rate reconciliation - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Schedule of effective income tax rate reconciliation [Abstract]

Income (loss) before taxes, as reported in the consolidated statements of operations

$ 15,392

$ (3,231)

$ 10,911

Theoretical tax expense (benefit) at the Israeli statutory tax rate

3,540

(741)

2,510

Tax adjustment in respect of different tax rate of foreign subsidiaries

309

(94)

151

Non-deductible expenses and other permanent differences

(1,808)

(278)

Stock based compensation

355

1,485

1,247

Beneficiary enterprise benefits

^[1]

(560)

(68)

(3,935)

Increase (decrease) in other uncertain tax positions

(2,037)

1,318

713

Other

(70)

(19)

Actual tax expense (benefit)

$ (135)

$ 1,552

$ 744

(*) Basic and diluted earnings per share amounts of the benefit resulting from the “Beneficiary Enterprise” status (in Dollars per share)

^[1]

$ 0.01

$ 0

$ 0.1

[1]	Basic and diluted earnings per share amounts of the benefit resulting from the “Beneficiary Enterprise” status

Other Payables and Accrued Expenses

12 Months Ended

Dec. 31, 2021

Other Payables And Accrued Expenses Disclosure [Abstract]

OTHER PAYABLES AND ACCRUED EXPENSES

NOTE 8:-

OTHER PAYABLES AND ACCRUED EXPENSES

	December 31,
	2021		2020

Government authorities	$	3,221	$	902
Warranty provision		3,640		1,419
Provision for returns		2,178		1,759
Professional services		1,411		774
Accrued expenses		6,838		6,759

	$	17,288	$	11,613