Shareholders' Equity

12 Months Ended

Dec. 31, 2023

Shareholders' Equity [Abstract]

Shareholders' Equity

Note 16 - Shareholders’ Equity

A.  General

The Company shares are traded on the NASDAQ Global Market under the symbol of CAMT, and also listed and traded on the Tel-Aviv stock exchange.

B.  Stock Option Plan

As of December 31, 2023, the Company has one effective Share Incentive Plan (and Sub-Plan for Grantees Subject to Israeli Taxation) for the issuance of options, restricted share units and/ or restricted shares to employees, officers, directors, consultants and other services providers of the Company or any affiliated companies thereof (the “2018 Plan”). The 2018 Plan was adopted by the Company in April 2018 and thereby replaced the Company’s previous equity plans (the “2014 Share Option Plan” and the “2007 Restricted Share Unit Plan”). The total number of equity awards that may be granted under the 2018 Plan during each calendar year is equal to three and a half percent (3.5%) of the Company’s total issued and outstanding Share capital as of December 31 of the preceding calendar year.

The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option-pricing model that used the weighted average assumptions in the following table and recognized over the vesting period of four years. The risk‑free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. In 2023, 16,224 options were granted.

	2023 Grant
Valuation assumptions:
Dividend yield	0
Expected volatility	39%-48%
Risk-free interest rate	2%-4%%
Expected life (years) *	4.0
Vesting period (years)	1.0

*Expected life for the periods presented was determined according to the simplified method since the Company does not have enough history to make an estimate.

The total intrinsic value of outstanding options as of December 31, 2023, 2022, and 2021 is $1,207, $375 and $738, respectively.

The total intrinsic value of vested options as of December 31, 2023, 2022, and 2021 is $1,189, $375 and $683 respectively.

The total stock option compensation expense amounted to $100, $63, and $110 in 2023, 2022 and 2021, respectively.

As of December 31, 2023, 3,520 options were unvested. The unrecognized compensation cost related to non-vested share-based compensation arrangements amounted to $100, which will be recognized over one year.

Share option activity during the past three years is as follows:

	Year Ended December 31,
	2023					2022					2021
				Weighted					Weighted					Weighted
	Number			average		Number			average		Number			average
	of			exercise		of			exercise		of			exercise
	options			price US$		options			price US$		options			price US$
Outstanding at January 1		21,318			12.96		22,102			12.66		89,925			3.80
Granted		16,224			31.5		-			-		5,704			36.45
Forfeited and cancelled		-			-		-			-		(106	)		4.38
Exercised		(11,445	)		16.41		(784	)		4.38		(73,421	)		3.67
Outstanding at year end		26,097			22.99		21,318			12.96		22,102			12.66
Exercisable at year end		22,577			16.78		21,318			12.96		16,398			4.38

The income tax benefit associated with stock options exercised each year was immaterial.

			Weighted	Aggregate
	Number	Weighted	Average	intrinsic
	of	average	Remaining	Value (in
	options	exercise	Contractual	US$
	outstanding	price US$	term (years)	thousands)
Outstanding and exercisable as of December 31, 2023	22,577	16.67	3.73	1,189

The following table summarizes information about non-vested options at December 31, 2023:
 

				Weighted
				average
				grant- date
	Options			fair value
Balance at January 1, 2023		-			-
Granted		16,224			12.32
Vested		(12,704	)		7.87
Forfeited		-			-
Balance at December 31, 2023		3,520			28.4

C. Restricted Share Unit Plan

In April 2018, the Company adopted a Restricted Share Unit (“RSU”) Plan (the “Plan”) to replace the 2007 Restricted Share Unit Plan, pursuant to which the Company’s Board of Directors may grant shares to officers and key employees. The total number of shares, which may be granted to directors, officers, employees and consultants under this Plan, is limited to 3.5% out of the outstanding shares (1,571,557 as of December 31, 2023). Forfeited units are returned to the pool.

The exercise price for each grantee shall be as determined by the Board and specified in the applicable RSU notice of grant; provided, however, that unless otherwise determined by the Board (which determination shall not require shareholder approval unless so required in order to comply with Mandatory Law), the exercise price shall be no more than the underlying share’s nominal value. For the removal of any doubt, the Board is authorized (without the need for shareholder approval unless so required in order to comply with Mandatory Law) to determine that the exercise price of an RSU is to be $0.00.

Unless otherwise determined by the Board with respect to any specific grantee or to any specific grant, (which determination shall not require shareholder approval unless so required in order to comply with Mandatory Law) and provided accordingly in the applicable RSU notice of grant, the RSUs shall vest (become automatically exercised) according to the vesting schedules as determined by the Board.

	RSUs		Weighted average grant date value
Balance at January 1, 2023	1,101,421		$	28.58
Granted	541,248		$	26.43
Vested	(477,235	)	$	24.56
Forfeited	(30,083	)	$	31.55
Balance at December 31, 2023	1,135,351		$	29.27

The total intrinsic value of outstanding RSUs as of December 31, 2023, 2022 and 2021 is $78.77, $21.96 and $46.04, respectively.

The weighted average grant date fair value of RSUs granted during 2023, 2022, and 2021 is $26.43, $36.69 and $34.33, respectively.

The total compensation cost from RSUs recognized in the year ending December 31, 2023, amounted to $12,489. This is recorded as salary expenses within cost of goods and operating expenses. The unrecognized compensation expense in the amount of $25,200 will be recognized in the years 2024 to 2027.

The income tax benefit associated with all compensation cost for share-based payment awards is immaterial.