Note 4 - Supplementary Financial Statements Information

A. Cash and cash equivalents

The Company’s cash and cash equivalent balance at June 30, 2025 and December 31, 2024 is denominated in the following currencies:

	June 30,		December 31,
	2025		2024
	U.S. Dollars
US Dollars		181,795		117,638
New Israeli Shekels		4,007		5,243
Other currencies		6,226		3,343

		192,028		126,224

Short-term deposits are bank deposits in US Dollars with an original maturity of more than three months and remaining term at the balance sheet date of no more than twelve months. As of June 30, 2025, the average annual interest rate was 4.84%.

B. Marketable Securities

Summary of marketable securities amortized cost, unrealized gains, unrealized losses, and fair value as of June 30, 2025 and December 31, 2024:

	June 30, 2025
	U.S. Dollars
Marketable Securities	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Matures within one year:
Corporate bonds		33,286		70		(3	)		33,353
Government bonds		6,612		-		-			6,612
		39,898		70		(3	)		39,965
Matures after one year:
Corporate bonds		79,888		975		(16	)		80,847
Government bonds		6,897		123		-			7,020
		86,785		1,098		(16	)		87,867
		126,683		1,168		(19	)		127,832

	December 31, 2024
	U.S. Dollars
Marketable Securities	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Matures within one year:
Corporate bonds		28,718		74		-			28,792
Government bonds		2,020		1		-			2,021
		30,738		75		-			30,813
Matures after one year:
Corporate bonds		80,144		366		(306	)		80,204
Government bonds		6,864		47		-			6,911
		87,008		413		(306	)		87,115
		117,746		488		(306	)		117,928

The amortized cost and estimated fair value of marketable securities classified by the maturity date listed on the security, regardless of the Consolidated Balance Sheet classification, is as follows at June 30, 2025 and December 31, 2024:

	June 30, 2025
	Amortized Cost		Fair Value
	U.S. Dollars
Due within one year		39,898		39,965
Due after one through five years		86,785		87,867
Due after five through ten years		-		-
Total marketable securities		126,683		127,832

	December 31, 2024
	Amortized Cost		Fair Value
	U.S. Dollars (in thousands)
Due within one year		30,738		30,813
Due after one through five years		87,008		87,115
Due after five through ten years		-		-
Total marketable securities		117,746		117,928

The following table summarizes the estimated fair value and gross unrealized holding losses of marketable securities, aggregated by investment instrument and period of time in an unrealized loss position, at June 30, 2025 and December 31, 2024.

	In Unrealized Loss Position For Less Than 12 Months
June 30, 2025	Fair Value		Gross Unrealized Loss
	U.S. Dollars

Corporate bonds		3,340		(16	)
		3,340		(16	)

	In Unrealized Loss Position For Less Than 12 Months
December 31, 2024	Fair Value		Gross Unrealized Loss
	U.S. Dollars

Corporate bonds		34,083		(306	)
		34,083		(306	)

The level in the fair value hierarchy within which an asset or liability is classified is based on the lowest level input that is significant to the fair value measurement in its entirety.

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, aggregated by the level in the fair-value hierarchy within which those measurements fall:

	June 30, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)


Description
	U.S. Dollars

Assets
Marketable securities (current assets)		39,965		6,612		33,353		-
Marketable securities (non-current assets)		87,867		7,020		80,847		-
Total Assets		127,832		13,632		114,200		-

	December 31, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)


Description
	U.S. Dollars

Assets
Marketable securities (current assets)		30,813		1,016		29,797		-
Marketable securities (non-current assets)		87,115		6,911		80,204		-
Total Assets		117,928		7,927		110,001		-

The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. In the periods ended June 30, 2025 and December 31, 2024, the Company invested in marketable securities.

Marketable securities are classified within Level 2 because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs.

C. Inventories

	June 30,		December 31,
	2025		2024
	U.S. Dollars
Components		74,612		65,845
Work in process		33,209		21,445
Finished products (including systems at customer locations not yet sold)		41,247		35,793

		149,068		123,083

Inventories are presented in:

	June 30,		December 31,
	2025		2024
	U.S. Dollars
Current assets		133,709		111,204
Long-term assets		15,359		11,879

		149,068		123,083

D. Other Current Assets

	June 30,		December 31,
	2025		2024
	U.S. Dollars

Interest receivable		8,397		9,269
Due from Government institutions and income tax receivables		7,372		5,457
Prepaid expenses and vendor downpayments		3,955		5,499
Other		1,494		1,122

		21,218		21,347

E. Property, Plant and Equipment, Net

	June 30,		December 31,
	2025		2024
	U.S. Dollars
Land		1,416		1,401
Building		25,993		23,444
Machinery and equipment		38,155		33,474
Office furniture and equipment		1,479		1,129
Computer equipment and software		8,749		7,197
Automobiles		499		431
Leasehold improvements		3,769		3,508
Operating lease right of use assets		3,581		8,442
Finance lease right of use assets		4,881		4,881
		88,522		83,907

Less - accumulated depreciation		31,717		29,711

		56,805		54,196

Depreciation for the six months period ended June 30, 2025 and for the year ended December 31, 2024 amounted to $3,823 and $6,825, respectively.

F. Intangible Assets, Net

	June 30,		December 31,
	2025		2024
	U.S. Dollars
Cost:
Patent registration costs		2,796		2,569
Acquired technology		12,200		12,200
Acquired trade names		2,700		2,700
Acquired customer relationship		2,000		2,000
		19,696		19,469

Less accumulated amortization		8,040		6,112

Total intangible assets, net		11,656		13,357

Amortization expense for the six months period ended June 30, 2025 and for the year ended December 31, 2024 amounted to $1,926 and $3,841, respectively.

G. Other Current Liabilities

	June 30,		December 31,
	2025		2024
	U.S. Dollars

Advances from customers and deferred revenues		37,621		28,919
Accrued employee compensation and other related benefits		14,902		15,708
Commissions		13,351		12,733
Government institutions and income tax payable		11,104		10,072
Accrued warranty costs (1)		4,701		4,355
Accrued expenses		5,189		3,005
Operating lease obligations		1,871		2,204
Finance lease obligations		341		284

		89,080		77,280

(1) Changes in the accrued warranty costs are as follows:

	June 30,			December 31,
	2025			2024
	U.S. Dollars

Beginning of period		4,355			3,397
Accruals		4,414			7,643
Usage		(4,068	)		(6,685	)

Balance at end of period		4,701			4,355

H. Convertible Notes

The Convertible Senior Notes consisted of the following:

	June 30,			December 31,
	2025			2024
	U.S. Dollars
Liability:
Principle:		200,000			200,000
Unamortized issuance costs		(1,528	)		(2,075	)
Net carrying amount		198,472			197,925

As of June 30, 2025, the debt issuance costs of the Notes will be amortized over the remaining term of approximately 1.5 years.

The annual effective interest rate of the Notes is 0.56%. In the six-months ended June 30, 2025, $547 was recorded as amortization of debt issuance costs (In the year ended December 31, 2024 - $1,094).

As of June 30, 2025, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $305,811 (December 31, 2024 - $301,157). The estimated fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period.

As of June 30, 2025, the if-converted value of the Notes exceeded the principal amount by $105,811 (December 31, 2024, the if-converted value of the Notes exceeded the principal amount by $101,157).