Post-effective amendment to a registration statement that is not immediately effective upon filing

Taxes on Income

v3.22.1
Taxes on Income
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
TAXES ON INCOME

NOTE 16:-   TAXES ON INCOME

a.      General:

Israeli tax rate:

b.

The Corporate tax rate in Israel relevant to the Company in 2019, 2020 and 2021 — 23%.

A company is taxable on its real (non-inflationary) capital gains at the corporate tax rate in the year of sale.

United States:

The Company’s subsidiaries are separately taxed under the U.S. tax laws at a corporate rate of 21%.

b.      Loss before income taxes:

The following are the domestic and foreign components of the Company’s loss before income taxes:

     

Year ended December 31,
   

2021

  

2020

  

2019

Domestic

  

$

(58,092

)

  

$

(15,625

)

  

$

(25,607

)

Foreign

  

 

—

 

  

 

—

 

  

 

—

 

Total

  

$

(58,092

)

  

$

(15,625

)

  

$

(25,607

)

c.      Taxes on income:

The reconciliation of the income tax benefit that would result from applying the Israeli statutory tax rate to the Company’s reported income tax (benefit) is as follows:

     

Year ended December 31,
   

2021

  

2020

  

2019

Loss before income taxes, as reported in the consolidated statements of operations

  

$

58,092

 

  

$

15,625

 

  

$

25,607

 

Statutory tax rate

  

 

23

%

  

 

23

%

  

 

23

%
   

 

  

 

  

 

  

 

  

 

  

 

Income tax benefit at statutory tax rate

  

$

(13,361

)

  

$

(3,594

)

  

$

(5,890

)

Non-deductible expenses

  

 

6,096

 

  

 

358

 

  

 

156

 

Remeasurement of deferred taxes from currency exchange

  

 

209

 

  

 

(1,093

)

  

 

(444

)

Change in valuation allowance

  

 

7,023

 

  

 

4,316

 

  

 

6,162

 

Effect of other non-deductible differences

  

 

33

 

  

 

13

 

  

 

16

 

Reported income taxes benefit

  

$

—

 

  

$

—

 

  

$

—

 

d.      Net operating loss carryforward:

As of December 31, 2021, the Company had a net operating loss carryforward for Israeli tax purposes of approximately $70,612. These net operating loss carryforwards can be carried forward and offset against taxable income indefinitely.

e.      Deferred tax assets and liabilities:

Deferred tax assets and liabilities are recognized for the 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 and for carryforwards.

The principal components of the Company’s deferred tax assets are as follows:

     

December 31
   

2021

  

2020

Deferred tax assets:

  

 

  

 

  

 

  

 

Net operating loss carry forwards

  

$

16,241

 

  

$

11,201

 

Research and development

  

 

5,165

 

  

 

3,394

 

Employees and payroll accrual

  

 

365

 

  

 

176

 

Property and equipment

  

 

61

 

  

 

38

 

Total deferred tax assets

  

 

21,832

 

  

 

14,809

 

Valuation allowance

  

 

(21,832

)

  

 

(14,809

)

Deferred tax assets, net of valuation allowance

  

$

—

 

  

$

—

 

Based on the available evidence, management believes that it is more likely than not that certain of its deferred tax assets relating to net operating loss carryforwards and other temporary differences in Israel will not be realized and accordingly, a valuation allowance has been provided.

f.       Tax assessments:

The Company has not received final tax assessments since its incorporation.

g.      Unrecognized Tax Benefits:

As of December 31, 2021, 2020 and 2019, the Company did not have any unrecognized tax benefits and does not expect that the amount of unrecognized tax benefits will change significantly within the next 12 months. The Company’s accounting policy is to accrue interest and penalties related to an underpayment of income taxes as a component of income tax expense.