Contingent Liabilities and Commitments

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

CONTINGENT LIABILITIES AND COMMITMENTS

NOTE 9: CONTINGENT LIABILITIES AND COMMITMENTS

a. Legal proceedings:

From time to time the Company or its subsidiaries may be involved in legal proceedings and/or litigation arising in the ordinary course of business. While the outcome of these matters cannot be predicted with certainty, the Company does not believe it will have a material effect on its consolidated financial position, results of operations, or cash flows.

b. Bank guarantees:

As of December 31, 2021, the Company obtained bank guarantees in the amount of $3,334, primarily in connection with an Investment Center grant of up to $3,171 expected to be received in 2022 which requires a bank guarantee in order to ensure the fulfillment of the grant terms.

NOTE 9: CONTINGENT LIABILITIES AND COMMITMENTS (Cont.)

c. Governments grants

The Company has received grants from the IIA to finance its research and development programs in Israel, through which the Company received IIA participation payments in the aggregate amount of $37.3 million through December 31, 2021, of which $34.7 million is royalty-bearing grants and $2.6 million is non-royalty-bearing grants. In return, the Company is committed to pay IIA royalties at a rate of 3-3.5% of future sales of the developed products, up to 100% of the amount of grants received plus interest at LIBOR rate. Through December 31, 2021, no royalties have been paid or accrued. The Company’s contingent royalty liability to the IIA at December 31, 2021, including grants received by the Company and the associated LIBOR interest on all such grants totaled to $44.7 million.