|
Note 5. Fair Value Measurement
The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, in its consolidated balance sheets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
|
(U.S. $ in thousands) |
| Assets: |
|
|
|
|
|
|
Foreign exchange forward contracts not designated as hedging instruments |
|
$ |
— |
|
|
$ |
15 |
|
|
$ |
— |
|
Foreign exchange forward contracts designated as hedging instruments |
|
— |
|
|
454 |
|
|
— |
|
| Convertible notes |
|
— |
|
|
— |
|
|
15,400 |
|
Marketable securities |
|
289 |
|
|
— |
|
|
— |
|
| Liabilities: |
|
|
|
|
|
|
Foreign exchange forward contracts not designated as hedging instruments |
|
— |
|
|
(175) |
|
|
— |
|
Foreign exchange forward contracts designated as hedging instruments |
|
— |
|
|
(235) |
|
|
— |
|
| Contingent consideration1 |
|
— |
|
|
— |
|
|
(12,513) |
|
|
|
$ |
289 |
|
|
$ |
59 |
|
|
$ |
2,887 |
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
|
(U.S. $ in thousands) |
| Assets: |
|
|
|
|
|
|
| Foreign exchange forward contracts not designated as hedging instruments |
|
$ |
— |
|
|
$ |
71 |
|
|
$ |
— |
|
| Foreign exchange forward contracts designated as hedging instruments |
|
— |
|
|
4,005 |
|
|
— |
|
| Convertible notes |
|
— |
|
|
— |
|
|
10,486 |
|
| Marketable securities |
|
596 |
|
|
— |
|
|
— |
|
| Liabilities: |
|
|
|
|
|
|
| Foreign exchange forward contracts not designated as hedging instruments |
|
— |
|
|
(21) |
|
|
— |
|
| Foreign exchange forward contracts designated as hedging instruments |
|
— |
|
|
(3) |
|
|
— |
|
| Contingent consideration¹ |
|
— |
|
|
— |
|
|
(12,694) |
|
|
|
$ |
596 |
|
|
$ |
4,052 |
|
|
$ |
(2,208) |
|
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.
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.
The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
2025 |
|
2024 |
|
|
|
|
(U.S. $ in thousands) |
| Fair value at the beginning of the period |
|
|
|
$ |
(2,208) |
|
|
$ |
(11,585) |
|
| Acquisitions of Contingent considerations |
|
|
|
(102) |
|
|
— |
|
| Investments in Convertible notes |
|
|
|
10,325 |
|
|
5,368 |
|
| Note and accrued interest converted to ordinary shares |
|
|
|
(6,969) |
|
|
— |
|
| Revaluation of Contingent considerations |
|
|
|
(1,031) |
|
|
4,897 |
|
Revaluation of Convertible notes and interest accrued |
|
|
|
1,558 |
|
|
(1,900) |
|
| Settlements of Contingent considerations |
|
|
|
1,314 |
|
|
1,012 |
|
| Fair value at the end of the period |
|
|
|
$ |
2,887 |
|
|
$ |
(2,208) |
|
|