Note 10 - Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 10: DERIVATIVES AND HEDGING ACTIVITIES

The fair value of the Company’s outstanding derivative instruments is as follows:

	Year ended December 31,
	2022		2023
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Foreign exchange forward contracts	$	13	$	988
Total	$	13	$	988
Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	23	$	—
Foreign exchange forward contracts	$	96	$	—
Total	$	119	$	—

The Company recorded the fair value of derivative assets in “prepaid expenses and other current assets” and the fair value of derivative liabilities in “accrued expenses and other payables” on the Company’s consolidated balance sheets.

The changes in unrealized gains (losses) recognized in “accumulated other comprehensive income (loss)” on derivatives, before tax effect, is as follows:

	Year ended December 31,
	2021		2022			2023
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	—	$	(361	)	$	(265	)
Foreign exchange forward contracts		228		(1,100	)		281
	$	228	$	(1,461	)	$	16

The net (gains) losses reclassified from “accumulated other comprehensive income (loss)” into income, are as follows:

	Year ended December 31,
	2021			2022		2023
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	—		$	338	$	288
Foreign exchange forward contracts		(165	)		954		790
	$	(165	)	$	1,292	$	1,078

The Company recorded in cost of revenues and operating expenses, a net gain of $165, a net loss of $1,292 and a net loss of $1,078 during the years ended December 31, 2021, 2022 and 2023, respectively, related to its Hedging Contracts.