Exhibit 99.1
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2023
(UNAUDITED)
INDEX TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023
(UNAUDITED)
Item |
Page | |
Consolidated Balance Sheets |
2 | |
Consolidated Statements of Operations and Comprehensive Loss |
3 | |
Consolidated Statements of Changes in Equity |
4-5 | |
Consolidated Statements of Cash Flows |
6 | |
Notes to Condensed Consolidated Interim Financial Statements |
7-20 |
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
Consolidated Balance Sheets | ||||||||
(in thousands, except per share data) | ||||||||
June 30, 2023 | December 31, 2022 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Short-term deposits | ||||||||
Accounts receivable, net of allowance for credit losses of $ | ||||||||
Inventories | ||||||||
Prepaid expenses | ||||||||
Other current assets | ||||||||
Total current assets | ||||||||
Non-current assets | ||||||||
Property, plant and equipment, net | ||||||||
Goodwill | ||||||||
Other intangible assets, net | ||||||||
Operating lease right-of-use assets | ||||||||
Long-term investments | ||||||||
Other non-current assets | ||||||||
Total non-current assets | ||||||||
Total assets | $ | $ | ||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | $ | ||||||
Accrued expenses and other current liabilities | ||||||||
Accrued compensation and related benefits | ||||||||
Deferred revenues - short term | ||||||||
Operating lease liabilities - short term | ||||||||
Total current liabilities | ||||||||
Non-current liabilities | ||||||||
Deferred revenues - long term | ||||||||
Deferred income taxes - long term | ||||||||
Operating lease liabilities - long term | ||||||||
Contingent consideration - long term | ||||||||
Other non-current liabilities | ||||||||
Total non-current liabilities | ||||||||
Total liabilities | $ | $ | ||||||
Contingencies (see note 13) | ||||||||
Equity | ||||||||
Ordinary shares, NIS | ||||||||
Additional paid-in capital | ||||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
Accumulated deficit | ( | ) | ( | ) | ||||
Total equity | ||||||||
Total liabilities and equity | $ | $ |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||
Revenues | ||||||||||||||||||
Products | $ | $ | $ | $ | ||||||||||||||
Services | ||||||||||||||||||
Cost of revenues | ||||||||||||||||||
Products | ||||||||||||||||||
Services | ||||||||||||||||||
Gross profit | ||||||||||||||||||
Operating expenses | ||||||||||||||||||
Research and development, net | ||||||||||||||||||
Selling, general and administrative | ||||||||||||||||||
Operating loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
Financial income (expenses), net | ( | ) | ( | ) | ||||||||||||||
Loss before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
Income tax benefit (expenses) | ( | ) | ( | ) | ||||||||||||||
Share in losses of associated companies | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
$ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||
Comprehensive loss | ||||||||||||||||||
Net loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | ||||||||||||||
Unrealized gains (losses) on derivatives designated as cash flow hedges | ( | ) | ( | ) | ( | ) | ||||||||||||
Other comprehensive income (loss), net of tax | ( | ) | ( | ) | ||||||||||||||
Comprehensive loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
Consolidated Statements of Changes in Equity | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Three and Six Months Ended June 30, 2023 | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||
Ordinary Shares | Paid-In | Accumulated | Comprehensive | Total | ||||||||||||||||||||
Number of shares | Par Value | Capital | deficit | Loss | Equity | |||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
Issuance of shares in connection with stock-based compensation plans | ||||||||||||||||||||||||
Stock-based compensation | - | |||||||||||||||||||||||
Comprehensive loss | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
Issuance of shares in connection with stock-based compensation plans | ||||||||||||||||||||||||
Stock-based compensation | - | |||||||||||||||||||||||
Comprehensive income (loss) | - | ( | ) | ( | ) | |||||||||||||||||||
Issuance of Common stock under employee stock purchase plan | ||||||||||||||||||||||||
Issuance of shares as part of the Covestro acquisition | ||||||||||||||||||||||||
Balance as of June 30, 2023 | ( | ) | ( | ) |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
Consolidated Statements of Changes in Equity | ||||||||||||||||||||||||
(in thousands ) | ||||||||||||||||||||||||
Three and Six Months Ended June 30, 2022 | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||
Ordinary Shares | Paid-In | Accumulated | Comprehensive | Total | ||||||||||||||||||||
Number of shares | Par Value | Capital | deficit | Loss | Equity | |||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
Issuance of shares in connection with stock-based compensation plans | ||||||||||||||||||||||||
Stock-based compensation | - | |||||||||||||||||||||||
Comprehensive loss | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Balance as of March 31, 2022 | ( | ) | ( | ) | ||||||||||||||||||||
Issuance of shares in connection with stock-based compensation plans | ||||||||||||||||||||||||
Stock-based compensation | - | $ | $ | $ | $ | $ | ||||||||||||||||||
Comprehensive loss | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Balance as of June 30, 2022 | ( | ) | ( | ) |
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
Consolidated Statements of Cash Flows | |||||||||
in thousands | Six Months Ended June 30, | ||||||||
2023 | 2022 | ||||||||
Cash flows from operating activities | |||||||||
Net loss | $ | ( | ) | $ | ( | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
Impairment of other long-lived assets | |||||||||
Depreciation and amortization | |||||||||
Stock-based compensation | |||||||||
Foreign currency transaction loss | |||||||||
Share in losses of associated companies | |||||||||
Revaluation of investments | |||||||||
Other non-cash items, net | |||||||||
Change in cash attributable to changes in operating assets and liabilities: | |||||||||
Accounts receivable, net | ( | ) | ( | ) | |||||
Inventories | ( | ) | ( | ) | |||||
Other current assets and prepaid expenses | ( | ) | |||||||
Other non-current assets | |||||||||
Accounts payable | ( | ) | |||||||
Other current liabilities | ( | ) | ( | ) | |||||
Deferred revenues | |||||||||
Deferred income taxes, net and uncertain tax positions | ( | ) | |||||||
Other non-current liabilities | ( | ) | ( | ) | |||||
Net cash used in operating activities | ( | ) | ( | ) | |||||
Cash flows from investing activities | |||||||||
Cash paid for acquisitions, net of cash acquired | ( | ) | |||||||
Purchase of property and equipment | ( | ) | ( | ) | |||||
Investments in short-term bank deposits | ( | ) | ( | ) | |||||
Proceeds from short-term bank deposits | |||||||||
Purchase of intangible assets | ( | ) | ( | ) | |||||
Other investing activities | ( | ) | |||||||
Investments in unconsolidated entities | ( | ) | ( | ) | |||||
Net cash provided by investing activities | |||||||||
Cash flows from financing activities | |||||||||
Proceeds from exercise of stock options | |||||||||
Payment of contingent consideration | ( | ) | ( | ) | |||||
Other financing activities | - | ||||||||
Net cash used in financing activities | ( | ) | ( | ) | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ) | ( | ) | |||||
Net change in cash, cash equivalents and restricted cash | ( | ) | |||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||
Supplemental disclosures of cash flow information: | |||||||||
Non-cash investing and financing activities | |||||||||
Transfer of inventory to fixed assets | |||||||||
Transfer of fixed assets to inventory | |||||||||
Issuance of Common stock under employee stock purchase plan | |||||||||
Issuance of shares as part of Covestro acquisition (Refer to Note 3) | |||||||||
Contingent consideration | |||||||||
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets: | |||||||||
Cash and cash equivalents | |||||||||
Restricted cash included in other current assets | | ||||||||
Cash balances classified as Held for sale | |||||||||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | $ |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 1. Business Description and Basis of Presentation
The results of operations for the six and three months periods ended June 30, 2023 are not necessarily indicative of results that could be expected for the entire fiscal year. Certain financial information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The reader is referred to the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 3, 2023 as part of the Company’s Annual Report on Form 20-F for such year.
Note 2. New Accounting Pronouncements
Accounting Pronouncements Adopted in 2023
U.S. $ in thousands | ||||
Fair Value, net | $ | |||
Net assets deconsolidated | ( | ) | ||
Transaction expenses | ( | ) | ||
Gain on deconsolidation of subsidiary | $ |
U.S. $ in thousands | ||||
Cash payments* | $ | |||
Issuance of ordinary shares to Covestro stockholders | ||||
Contingent consideration at estimated fair value | ||||
Total consideration | $ |
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Allocation of Purchase Price | ||||
(U.S. $ in thousands) | ||||
Inventory | $ | |||
Fixed assets | ||||
Goodwill | ||||
Intangible assets | ||||
Total assets acquired | ||||
Other current liabilities | ||||
Total liabilities assumed | ||||
Net assets acquired | $ |
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 4. Recent developments
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 5. Revenues
Disaggregation of Revenues
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
(U.S. $ in thousands) | (U.S. $ in thousands) | ||||||||||||||
Americas | |||||||||||||||
Systems | $ | $ | $ | $ | |||||||||||
Consumables | |||||||||||||||
Service | |||||||||||||||
Total Americas | |||||||||||||||
EMEA | |||||||||||||||
Systems | |||||||||||||||
Consumables | |||||||||||||||
Service | |||||||||||||||
Total EMEA | |||||||||||||||
Asia Pacific | |||||||||||||||
Systems | |||||||||||||||
Consumables | |||||||||||||||
Service | |||||||||||||||
Total Asia Pacific | |||||||||||||||
Total Revenues | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
(U.S. $ in thousands) | (U.S. $ in thousands) | ||||||||||||||
Revenues recognized in point in time from: | |||||||||||||||
Products | $ | $ | $ | $ | |||||||||||
Services | |||||||||||||||
Total revenues recognized in point in time | |||||||||||||||
Revenues recognized over time from: | |||||||||||||||
Services | |||||||||||||||
Total revenues recognized over time | |||||||||||||||
Total Revenues | $ | $ | $ | $ |
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Contract Assets and Contract Liabilities
Contract assets are recorded when the Company's right to consideration is conditional on constraints other than the passage of time. The Company had no material contract assets as of June 30, 2023 and December 31, 2022.
Contract liabilities include advance payments and billings in excess of revenue recognized, which are primarily related to advanced billings for service type warranty. Contract liabilities are presented under deferred revenue.
June 30, 2023 | December 31, 2022 | ||||||
U.S. $ in thousands | |||||||
Deferred revenue* | $ | $ |
*
Revenue recognized in 2023 that was included in deferred revenue balance as of December 31, 2022 was $
Remaining Performance Obligations
Remaining Performance Obligations (“RPO“) represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of June 30, 2023, the total RPO amounted to $
Incremental Costs of Obtaining a Contract
Sales commissions earned mainly by the Company’s sales agents are considered incremental costs of obtaining a contract with a customer, as the Company expects the benefit of those commissions to be longer than one year. The majority of the sales commissions are not subject to capitalization, as the commission expense is recognized as the related revenue is recognized. Sales commissions for initial contracts related to the service type warranty are deferred and then amortized on a straight-line basis over the expected customer relationship period if the Company expects to recover those costs. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive loss. As of June 30, 2023 and December 31, 2022, the deferred commissions amounted to $
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 6. Inventories
June 30, 2023 | December 31, 2022 | ||||||
U.S. $ in thousands | |||||||
Finished goods | $ | $ | |||||
Work-in-process | |||||||
Raw materials | |||||||
$ | $ |
Note 7. Goodwill and Other Intangible Assets
Goodwill
U.S. $ in thousands | ||||
Goodwill as of January 1, 2023 | $ | |||
Goodwill acquired | ||||
Foreign currency translation adjustments | ||||
Goodwill as of June 30, 2023 | $ |
Other Intangible Assets
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
Carrying Amount, | Net | Carrying Amount, | Net | |||||||||||||||||||||
Net of | Accumulated | Book | Net of | Accumulated | Book | |||||||||||||||||||
Impairment | Amortization | Value | Impairment | Amortization | Value | |||||||||||||||||||
U.S. $ in thousands | ||||||||||||||||||||||||
Developed technology | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
Patents | ( | ) | ( | ) | ||||||||||||||||||||
Trademarks and trade names | ( | ) | ( | ) | ||||||||||||||||||||
Customer relationships | ( | ) | ( | ) | ||||||||||||||||||||
Capitalized software development costs | ( | ) | ( | ) | ||||||||||||||||||||
$ | $ | ( | ) | $ | $ | $ | ( | ) | $ |
Amortization expenses relating to intangible assets for the three-month periods ended June 30, 2023 and 2022 were approximately $
Estimated | ||||
amortization expenses | ||||
(U.S. $ in thousands) | ||||
Remaining 6 months of 2023 | $ | |||
2024 | ||||
2025 | ||||
2026 | ||||
2027 | ||||
2028 and thereafter | ||||
Total | $ |
Note 8. Net Loss Per Share
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
In thousands, except per share amounts | In thousands, except per share amounts | ||||||||||||||
Numerator: | |||||||||||||||
$ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Denominator: | |||||||||||||||
Net loss per share | |||||||||||||||
$ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
The computation of diluted net loss per share excluded share awards of
The computation of diluted net loss per share excluded share awards of
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 9. Income Taxes
The
Company had income tax expense of $
Note 10. Fair Value Measurements
Financial instruments measured at fair value
June 30, 2023 | December 31, 2022 | ||||||||||||||
Level 2 | Level 3 | Level 2 | Level 3 | ||||||||||||
(U.S. $ in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Foreign exchange forward contracts not designated as hedging instruments | $ | $ | $ | $ | |||||||||||
Foreign exchange forward contracts designated as hedging instruments | |||||||||||||||
Liabilities: | |||||||||||||||
Foreign exchange forward contracts not designated as hedging instruments | ( | ) | ( | ) | |||||||||||
Foreign exchange forward contracts designated as hedging instruments | ( | ) | ( | ) | |||||||||||
Convertible notes | |||||||||||||||
Contingent consideration* | |||||||||||||||
$ | ( | ) | $ | $ | ( | ) | $ |
The Company's foreign exchange forward contracts are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs, including interest rate curves and both forward and spot prices for currencies (Level 2 inputs).
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions, and thus represents a Level 3 measurement within the fair value hierarchy (refer to Note 3).
Other financial instruments consist mainly of cash and cash equivalents, short-term deposits, current and non-current receivables, accounts payable and other current liabilities. The fair value of these financial instruments approximates their carrying values.
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 11. Derivative instruments and hedging activities
Since the Company conducts its operations globally, it is exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign currency exchange rates. The Company enters into transactions involving foreign currency exchange derivative financial instruments. The Company manages its foreign currency exposures on a consolidated basis, which allows the Company to net exposures and take advantage of any natural hedging. The transactions are designed to manage the Company’s net exposure to foreign currency exchange rates and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not enter into derivative transactions for trading purposes.
The Company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities and forecasted transactions denominated in the New Israeli Shekel (“NIS”), Euro, British Pound, Korean Won, Chinese Yuan and the Japanese Yen. The gains and losses on the hedging instruments partially offset losses and gains on the hedged items. Financial markets and currency volatility may limit the Company’s ability to hedge these exposures. These contracts mature through June 2023.
Fair Value | Notional Amount | |||||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||||
Balance sheet location | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
U.S. $ in thousands | ||||||||||||||||||
Assets derivatives -Foreign exchange contracts, not designated as hedging instruments | Other current assets | $ | $ | $ | $ | |||||||||||||
Assets derivatives -Foreign exchange contracts, designated as cash flow hedge | Other current assets | |||||||||||||||||
Liability derivatives -Foreign exchange contracts, not designated as hedging instruments | Accrued expenses and other current liabilities | ( | ) | ( | ) | |||||||||||||
Liability derivatives -Foreign exchange contracts, designated as hedging instruments | Accrued expenses and other current liabilities | ( | ) | ( | ) | |||||||||||||
$ | ( | ) | $ | ( | ) | $ | $ |
Foreign exchange contracts not designated as hedging instruments
As of June 30, 2023, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $
Cash Flow Hedging - Hedges of forecasted foreign currency payroll and other operating expenses
As of June 30, 2023, the Company had in effect foreign exchange forward contracts, designated as cash flow hedges for accounting purposes, for the conversion of $
Cash Flow Hedging - Hedges of forecasted foreign currency revenue
As of June 30, 2023, the Company had in effect foreign exchange forward contracts, designated as cash flow hedges for accounting purposes, for the conversion of
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 12. Equity
a. Stock-based compensation plans
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
U.S $ in thousands | U.S $ in thousands | ||||||||||||||
Cost of revenues | $ | $ | $ | $ | |||||||||||
Research and development, net | |||||||||||||||
Selling, general and administrative | |||||||||||||||
Total stock-based compensation expenses | $ | $ | $ | $ |
Number of Options | Weighted Average Exercise Price | ||||||
Options outstanding as of January 1, 2023 | |||||||
Granted | |||||||
Exercised | ( | ) | |||||
Forfeited | ( | ) | |||||
Options outstanding as of June 30, 2023 | |||||||
Options exercisable as of June 30, 2023 |
As of June 30, 2023, the unrecognized compensation cost of $
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Number of RSUs and PSUs | Weighted Average Grant Date Fair Value | ||||||
Unvested as of January 1, 2023 | |||||||
Granted | |||||||
Vested | ( | ) | |||||
Forfeited | ( | ) | |||||
Unvested as of June 30, 2023 |
The fair value of RSUs and PSUs is determined based on the quoted price of the Company’s ordinary shares on the date of the grant.
As of June 30, 2023, the unrecognized compensation cost of $
Employee Stock Purchase Plan
On October 2021, the Company adopted the 2021 Employee Stock Purchase Plan (the “ESPP”). According to the ESPP, eligible employees may use up to
In accordance with ASC Topic 718, the ESPP is considered compensatory and, as such, results in recognition of stock-based compensation expenses.
b. Accumulated other comprehensive loss
Six Months Ended June 30, 2023 | |||||||||||
Net Unrealized Gain (Loss) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Total | |||||||||
U.S. $ in thousands | |||||||||||
Balance as of January 1, 2023 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||
Other comprehensive loss | ( | ) | |||||||||
Balance as of June 30, 2023 | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Six Months Ended June 30, 2022 | |||||||||||
Net Unrealized Gain (Loss) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Total | |||||||||
U.S. $ in thousands | |||||||||||
Balance as of January 1, 2022 | $ | $ | ( | ) | $ | ( | ) | ||||
Other comprehensive income before reclassifications | ( | ) | ( | ) | ( | ) | |||||
Amounts reclassified from accumulated other comprehensive loss | ( | ) | ( | ) | |||||||
Other comprehensive income | ( | ) | ( | ) | ( | ) | |||||
Balance as of June 30, 2022 | $ | $ | ( | ) | $ | ( | ) |
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
On July 24, 2022, the
Company’s Board of Directors adopted a shareholder rights plan (the “Rights
Plan”) to protect the interests of the Company’s shareholders. Each Right
entitles the registered holder thereof to purchase from the Company one ordinary
share, par value NIS
The adoption of the Rights
Plan is intended to protect the long-term interests of Stratasys and all Stratasys
shareholders. The Rights Plan is designed to reduce the likelihood that any
entity, person, or group would gain control of, or significant influence over,
Stratasys through the open-market accumulation of the Company’s shares without
appropriately compensating all Stratasys shareholders for control. The
Rights Plan will encourage anyone seeking to gain a significant interest in
Stratasys to negotiate directly with the Board prior to attempting to control
or significantly influence the Company. Further to those goals, the Rights may
cause substantial dilution to a person or group that acquires
Note 13. Contingencies
Legal proceedings