Exhibit No.
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Description
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INNOVIZ TECHNOLOGIES LTD.
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Date: August 11, 2021
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By:
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/s/ Eldar Cegla
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Name: Eldar Cegla
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Title: Chief Financial Officer
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• |
Significant progress and high performance in the company’s global business generation strategy with prospects and potential customers, facilitated by its research and development teams.
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• |
Realized continued momentum from the shuttle program design win continued and we aim to increase our volume through additional orders in the near future.
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• |
Won an advanced development project with a European autonomous truck company, which provides for Innoviz to equip the customer’s 2021 fleet with Innoviz technology. Innoviz believes it is well-positioned to pursue multi-year contracts
after the testing phase is complete.
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• |
Secured four new technical partnerships that expanded the company’s presence in Asia:
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1. |
Edom - One of Asia's largest electronics and semiconductor distributors will seek to drive sales and enhance support initiatives for Innoviz’s LiDAR solutions in the Greater China region.
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2. |
Whale Dynamic - China based full stack L4 autonomous driving company. Their platform will utilize InnovizOne LIDARs, replacing previous generation
Innoviz LiDAR, as its primary sensors with the goal of creating the world’s best sensor fusion design.
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3. |
SpringCloud - Korea based B2B Autonomous Mobility as a Service (MaaS) provider, with a platform conducting autonomous driving data analysis and perception validation. SpringCloud will
distribute Innoviz products in Korea across multiple sectors.
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4. |
Curium – Singapore based autonomous driving platform provider focused on the calibration and integration of LIDARs and other sensors for autonomous driving that will promote Innoviz LiDAR in
the region.
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• |
Completed several design cycles and are on the verge of freezing the hardware design for InnovizOne. Innoviz believes it is among the first in the industry to reach this milestone and is seeing
strong traction for the product.
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Developed early samples of InnovizOne+, an enhanced version of InnovizOne that features components developed for InnovizTwo extending the range and resolution.
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Completed optical design of InnovizTwo, the company’s top-of-the-line LIDAR that uses a single laser and detector, advanced packaging and electronic design at a 70% material cost reduction
compared to InnovizOne.
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Surpassed one million object annotations within Innoviz’s automotive perception platform, InnovizAPP. The platform is installed in test vehicles in three
continents (Asia, Europe and North America) and is accelerating timelines for consumer autonomous vehicle (AV) programs.
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Increased employee headcount by 29 people in the quarter, bringing the company’s total employee headcount to 337 at quarter end. Approximately 70% of the company’s talent base consists of the research and development team.
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Three Months Ended June 30,
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Six Months Ended June 30,
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|||||||||||||||
2020
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2021
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2020
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2021
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|||||||||||||
(Unaudited)
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(Unaudited)
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|||||||||||||||
Revenues
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$
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1,011
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$
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1,008
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1,849
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$
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1,735
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|||||||||
Cost of revenues
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(1,678
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)
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(2,078
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)
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(3,779
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)
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(3,536
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)
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||||||||
Gross loss
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(667
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)
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(1,070
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)
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(1,930
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)
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(1,801
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)
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||||||||
Operating expenses:
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||||||||||||||||
Research and development
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$
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11,479
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$
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32,088
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$
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27,217
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$
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48,822
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||||||||
Selling and marketing
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1,200
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15,629
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2,698
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17,181
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||||||||||||
General and administrative
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836
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23,006
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1,664
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24,427
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Total operating expenses
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13,515
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70,723
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31,579
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90,430
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||||||||||||
Operating loss
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(14,182
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)
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(71,793
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)
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(33,509
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)
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(92,231
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)
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Financial income (expenses), net
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462
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(709
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)
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90
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(907
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)
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Loss before taxes on income
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(13,720
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)
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(72,502
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)
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(33,419
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)
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(93,138
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)
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Taxes on income
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(22
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)
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(32
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)
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(92
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)
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(72
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)
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Net loss
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$
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(13,742
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)
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$
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(72,534
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)
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(33,511
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)
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$
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(93,210
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)
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Basic and diluted net loss per ordinary share
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$
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(0.73
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)
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$
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(0.58
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)
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(1.80
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)
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$
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(1.30
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)
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Weighted average number of ordinary shares used in computing basic and diluted net loss per ordinary share
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18,701,229
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125,188,537
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18,614,903
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71,458,394
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December 31,
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June 30,
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|||||||
2020
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2021
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|||||||
(Unaudited)
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||||||||
ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$
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49,950
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$
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156,418
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Short term deposits
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-
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195,000
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||||||
Restricted deposits
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8
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8
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Trade receivables
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2,506
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604
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Inventories
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2,164
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3,664
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Prepaid expenses and other current assets
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3,287
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9,771
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Total current assets
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57,915
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365,465
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LONG-TERM ASSETS:
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Restricted deposits
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864
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852
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Other long-term assets
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537
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163
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||||||
Property and equipment, net
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13,245
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14,053
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Total long-term assets
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14,646
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15,068
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Total assets
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$
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72,561
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$
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380,533
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LIABILITIES, CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' EQUITY (DEFICIT)
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CURRENT LIABILITIES:
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Trade payables
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$
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7,751
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$
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10,961
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||||
Advances from customers and deferred revenues
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1,661
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1,803
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Employees and payroll accruals
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5,528
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9,690
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Accrued expenses and other current liabilities
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2,854
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3,941
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Total current liabilities
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17,794
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26,395
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LONG-TERM LIABILITIES:
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Loan, net of current maturities
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2,224
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2,054
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Long-term advances from customers and deferred revenues
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3,473
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3,473
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Warrants
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-
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8,136
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Total long-term liabilities
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5,697
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13,663
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Convertible preferred shares
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272,815
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-
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SHAREHOLDERS' EQUITY (DEFICIT):
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Ordinary Shares of no-par value
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*-
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*-
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Additional paid-in capital
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7,658
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665,088
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Accumulated deficit
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(231,403
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)
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(324,613
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)
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Total shareholders' equity (deficit)
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(223,745
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)
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340,475
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Total liabilities, convertible preferred shares and shareholders' equity (deficit)
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$
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72,561
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$
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380,533
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Three Months Ended June 30,
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Six Months Ended June 30,
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|||||||||||||||
2020
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2021
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2020
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2021
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|||||||||||||
(Unaudited)
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(Unaudited)
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|||||||||||||||
Cash flows from operating activities:
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Net loss
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$
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(13,742
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)
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$
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(72,534
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)
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(33,511
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)
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$
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(93,210
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)
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Adjustments required to reconcile net loss to net cash used in operating activities:
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Depreciation and amortization
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1,022
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673
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1,533
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1,325
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||||||||||||
Revaluation of Private Warrants
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-
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845
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-
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845
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||||||||||||
Share-based compensation
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652
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49,887
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1,585
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51,662
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||||||||||||
Capital gain
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-
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-
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(6
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)
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-
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|||||||||||
Foreign exchange loss
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(659
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)
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(244
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)
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(215
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)
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(56
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)
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||||||||
Increase in prepaid expenses and other assets
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(1,505
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)
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(5,283
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)
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(734
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)
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(5,748
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)
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||||||||
Decrease (increase) in trade receivable
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(1
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)
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813
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423
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507
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|||||||||||
Decrease (increase) in inventories
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(262
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)
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(552
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)
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554
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(1,500
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)
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Increase (decrease) in trade payables
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(1,065
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)
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6,003
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(2,460
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)
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2,770
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||||||||||
Increase (decrease) in accrued expenses and other liabilities
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(2,025
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)
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298
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(1,153
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)
|
870
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||||||||||
Increase in employees and payroll accruals
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466
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3,430
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1,005
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4,162
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||||||||||||
Increase (decrease) in advances from customers and deferred revenues
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(118
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)
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186
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(61
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)
|
1,537
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||||||||||
Net cash used in operating activities
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(17,237
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)
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(16,478
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)
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(33,040
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)
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(36,836
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)
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||||||||
Cash flows from investing activities:
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||||||||||||||||
Purchase of property and equipment
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(629
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)
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(1,417
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)
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(2,206
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)
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(2,133
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)
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||||||||
Investment in bank deposits, net
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35,023
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(195,000
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)
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34,742
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(195,000
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)
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||||||||||
Decrease (Increase) in restricted deposits
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-
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(1
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)
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-
|
1
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|||||||||||
Net cash provided (used) in investing activities
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34,394
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(196,418
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)
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32,536
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(197,132
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)
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||||||||||
Cash flows from financing activities:
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||||||||||||||||
Cash received from reverse capitalization, net of Issuance cost
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-
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122,728
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-
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122,728
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||||||||||||
Issue of Ordinary shares, net of Issuance cost
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-
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46,843
|
-
|
217,343
|
||||||||||||
Proceeds from exercise of options
|
114
|
448
|
178
|
468
|
||||||||||||
Repayment of loan
|
(81
|
)
|
(76
|
)
|
(121
|
)
|
(134
|
)
|
||||||||
Net cash provided by financing activities
|
33
|
169,943
|
57
|
340,405
|
||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
641
|
297
|
207
|
20
|
||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
17,831
|
(42,656
|
)
|
(240
|
)
|
106,457
|
||||||||||
Cash, cash equivalents and restricted cash at beginning of the period
|
55,356
|
199,879
|
73,427
|
50,766
|
||||||||||||
Cash, cash equivalents and restricted cash at end of the period
|
$
|
73,187
|
$
|
157,223
|
73,187
|
$
|
157,223
|
Three Months Ended June 30,
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Six Months Ended June 30,
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|||||||||||||||
2020
|
2021
|
2020
|
2021
|
|||||||||||||
(Unaudited)
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(Unaudited)
|
|||||||||||||||
Supplementary disclosure of cash flows activities:
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||||||||||||||||
(1) Cash received during the period for:
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||||||||||||||||
Interest
|
$
|
(79
|
)
|
$
|
(6
|
)
|
(1
|
)
|
$
|
(6
|
)
|
|||||
(2) Cash paid during the period for:
|
||||||||||||||||
Interest
|
$
|
22
|
$
|
21
|
45
|
$
|
43
|
|||||||||
Income taxes
|
$
|
19
|
$
|
32
|
89
|
$
|
69
|
|||||||||
(3) Non-cash transactions:
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||||||||||||||||
Non-marketable securities in consideration for property and equipment
|
$
|
33
|
$
|
-
|
54
|
$
|
-
|
|||||||||
Conversion of preferred shares to ordinary shares
|
-
|
272,815
|
-
|
272,815
|
||||||||||||
Issuance of shares from Receipts on Ordinary shares account
|
-
|
170,500
|
-
|
-
|
||||||||||||
Issuance cost paid in Equity
|
-
|
47,603
|
-
|
77,309
|
||||||||||||
Deferred revenue reclassification
|
1,395
|
1,395
|
||||||||||||||
Deferred issuance costs
|
$
|
-
|
$
|
26,206
|
-
|
$
|
-
|
|||||||||
(4) Cash, cash equivalents and restricted cash at end of the period
|
||||||||||||||||
Cash and cash equivalents
|
$
|
72,429
|
$
|
156,418
|
72,429
|
$
|
156,418
|
|||||||||
Short-term restricted deposits
|
8
|
8
|
8
|
8
|
||||||||||||
Restricted deposits
|
750
|
797
|
750
|
797
|
||||||||||||
$
|
73,187
|
$
|
157,223
|
73,187
|
$
|
157,223
|