Commitments and contingent liabilities

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

a.Operating leases

The facilities of the Company are leased under various operating lease agreements for periods ending no later than 2044. The Company also has the option to extend the term of certain facility lease agreements and these are included in the calculation of right-of-use assets. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2026.

Under ASC 842, all leases with durations greater than 12 months, including non-cancelable operating leases, are recognized on the balance sheet. The aggregated present value of lease payments is recorded as a long-term asset titled right-of-use assets. The corresponding lease liabilities are split between other payables and long-term lease liabilities, and as of December 31, 2023, are as follows:


	December 31,
	2023
Future minimum lease payments:
2024	$	8,748
2025	8,126
2026	6,558
2027	5,315
2028	4,553
Thereafter	9,039


Total future minimum lease payments	$	42,339
Less imputed interest	(6,695)
Net present value of future minimum lease payments	$	35,644

Current year end
Short-term lease liabilities	$	8,224
Long-term lease liabilities	27,420
Net present value of future minimum lease payments	$	35,644

Weighted average of remaining operating lease term (years)	6.68

Weighted average of operating lease discount rate	5.59		%

Lease and rental expense for the years ended December 31, 2023, 2022 and 2021 was $8,196, $7,108, and $7,349, respectively.

b. Bank guarantee and pledges

As of December 31, 2023 and 2022 the Company pledged bank deposits of $2,848 and $2,296, respectively, to cover bank guarantees in respect of its leases of operating facilities and obtained guarantees by the bank for the fulfillment of the Company’s lease commitments of $3,216 and $2,459, respectively. In addition, €15,000 ($16,650) of the Company's short term investments are pledged to a bank as guarantee for the Company's due execution of cash concentration agreements.

c. Zai License and Collaboration Agreement

On September 10, 2018, the Company entered into the Zai Agreement. Under the Zai Agreement, the Company granted Zai exclusive rights to commercialize the Company's Products in the field of oncology in China, Hong Kong, Macau and Taiwan ("Greater China"). The Zai Agreement also established a development partnership for the Company's Products in multiple solid tumor indications. In partial consideration for the license grant to Zai for Greater China, the Company was entitled to a non-refundable, up-front license fee in the amount of $15,000 (the "License Fee"). The Zai Agreement also provides for certain development, regulatory and commercial milestone payments totaling up to $78,000. Furthermore, pursuant to the Zai Agreement, Zai will pay the Company tiered royalties at percentage rates from 10 up to the mid-teens on the net sales of the licensed products in Greater China. Zai is purchasing licensed products for commercial use exclusively from the Company at the Company’s fully burdened manufacturing cost.

d. Legal Proceedings

In June 2023, a putative class action lawsuit was filed against the Company, its Executive Chairman and its Chief Executive Officer. The complaint, later amended to add our Chief Financial Officer as a defendant, purports to be brought on behalf of a class of persons and/or entities who purchased or otherwise acquired ordinary shares of the Company from January 5, 2023 through June 5, 2023, and alleges material misstatements and/or omissions in the Company’s public statements with respect to the results from its phase 3 LUNAR clinical trial. The Company believes that the action is without merit and plans to defend the lawsuit vigorously. As of December 31, 2023, the Company has not accrued any amounts in respect of this claim, as it believes liability is not probable and the amount of any potential liability cannot be reasonably estimated.

e. Purchase Obligations

As of December 31, 2023, the Company has $43,075 in purchase obligations with certain of its suppliers.