Annual and transition report of foreign private issuers [Sections 13 or 15(d)]

Income Taxes (Tables)

v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of components of company's deferred tax assets and liabilities
December 31,
2025 2024
(U.S. $ in thousands)
Deferred tax assets
Tax losses carry forwards $ 786,379  $ 755,431 
Inventory related 2,731  2,500 
Intangible assets 4,551  11,465 
Provision for employee related obligations 2,808  2,380 
Stock-based compensation expense 14,726  9,838 
Deferred revenue 5,386  4,524 
Property, plant and equipment 202  254 
Allowance for credit losses 387  173 
Research and development credit carry forwards 22,511  21,577 
Research and development capitalization (including Section 174) 32,673  22,952 
Basis difference in equity method investment 19,349  9,240 
Other items 9,622  6,491 
Gross deferred tax assets
 901,325  846,825 
 Valuation allowance (890,920) (826,870)
Total deferred tax assets 10,405  19,955 
 
Deferred tax liabilities
Intangible assets (8,650) (7,423)
Property, plant and equipment (1,174) (12,077)
Total deferred tax liabilities (9,824) (19,500)
Net deferred tax assets (liabilities) $ 581  $ 455 
Schedule of deferred tax assets and liabilities classified in consolidated balance sheets
December 31,
2025 2024
(U.S. $ in thousands)
Deferred tax assets (under "Other non-current assets") $ 893  $ 962 
Deferred tax liabilities 312  507 
Net deferred tax assets (liabilities) $ 581  $ 455 
Schedule of valuation allowance
Valuation Allowance
U.S. $ in thousands
Balance at January 1, 2023 $ 699,694 
Additions 38,500 
Decrease (634)
Balance as of December 31, 2023 737,560 
Additions 94,935 
Decrease (5,625)
Balance as of December 31, 2024 826,870 
Additions 64,050 
Decrease — 
Balance as of December 31, 2025 $ 890,920 
Schedule of loss before Income Taxes
2025 2024 2023
(U.S. $ in thousands)
Domestic $ (12,426) $ (30,874) $ (47,959)
Foreign (49,677) (53,111) (36,628)
$ (62,103) $ (83,985) $ (84,587)
Schedule of components of income taxes
2025 2024 2023
(U.S. $ in thousands)
Current
Israel (domestic)
 $ 1,251  $ 4,976  $ 8,238 
Foreign
 2,343  1,823  2,874 
3,594  6,799  11,112 
Deferred
Israel (domestic) —  (3,774) (3,993)
Foreign (512) (52) (1,337)
(512) (3,826) (5,330)
Total income taxes $ 3,082  $ 2,973  $ 5,782 
Schedule of reconciliation of income tax rate
2025
$ %
IL Statutory Tax Rate $ (14,284) 23.0  %
Foreign Tax Effects
U.S.
Changes in valuation allowances 3,411  (5.5) %
Other 843  (1.4) %
U.K.
Changes in valuation allowances 8,213  (13.2) %
Other (617) 1.0  %
Other foreign jurisdictions 2,572  (4.1) %
Stock-based payment awards 1,071  (1.7) %
Changes in uncertain tax positions 1,936  (3.1) %
Other (63) 0.1  %
Effective Tax Rate $ 3,082  (5.0) %
2024 2023
Statutory tax rate 23.0  % 23.0  %
Reduced tax rate under Israeli benefit programs (1.5) (5.0) %
Share-based compensation expense
 (4.0) (3.8) %
Permanent differences, net —  1.0  %
Earnings taxed under foreign law with different tax rate 0.8  27.0  %
Valuation Allowance (17.5) (44.8) %
Changes in uncertain tax positions (5.5) (3.8) %
Withholding tax (0.1) (0.3) %
Other 1.7  (0.1) %
Effective income tax rate (3.5) % (6.8) %
Schedule of beginning and ending balance of uncertain tax positions
A reconciliation of the beginning and ending balance of uncertain tax positions is as follows:
2025 2024 2023
(U.S. $ in thousands)
Balance at beginning of year $ 9,978  $ 8,859  $ 6,043 
Additions for tax positions related to the current year 2,043  5,008  3,636 
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitation (107) (354) (458)
Classification to DTA (765) (3,535) (362)
Balance at end of year $ 11,148  $ 9,978  $ 8,859 
Schedule of Cash Flow, Supplemental Disclosures The income taxes paid by the Company are as follows:
Year ended December 31,
2025
(U.S. $ in thousands)
Israel $ 251 
Germany - Federal 711 
Germany - Rheinmünster 626 
Denmark 178 
Netherlands 303 
Hong Kong 169 
China 410 
Other foreign
 198 
$ 2,846