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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2020
Sep. 30, 2019
Cash flows from operating activities:      
Net income $ (1,891) $ (5,434) $ (1,103)
Adjustments required to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation   1,235 1,126
Equity-based compensation expenses related to employees’ stock options, SARs and RSUs   6,546 5,838
Realized losses (gains) from sale of marketable securities, net   (39) 50
Capital loss (gain) from sale and disposal of property and equipment   (48) 20
Amortization of intangible assets 427 636 312
Operating lease amortization expenses   1,778 1,211
Change in operating lease liability   (1,857) (488)
Accrued interest and amortization of premium on marketable securities and deposits   284 131
Change in operating assets and liabilities:      
Deferred income tax assets and liabilities, net   (385) (1,919)
Trade receivables, net   4,130 (8,169)
Other accounts receivable and prepaid expenses   (601) 616
Inventories   (713) 1,137
Long-term prepaid expenses   (381) 52
Trade payables   (796) (1,369)
Accrued compensation and benefits   565 1,452
Income tax accruals   373 846
Accrued expenses and other accounts payable   518 (172)
Accrued severance pay, net   93 93
Accrued pensions   29 22
Net cash provided by (used in) operating activities   5,933 (314)
Cash flows from investing activities:      
Purchase of marketable securities   (69,390) (31,283)
Purchase of short-term deposits   (10,953) (8,495)
Proceeds from maturity of marketable securities   46,924 20,906
Proceeds from sales of marketable securities   24,553 21,498
Proceeds from redemption of short-term deposits   7,953 7,973
Decrease in restricted deposits   17 0
Proceeds from sale of fixed assets   48 38
Purchases of property and equipment   (700) (5,312)
Acquisition of initially consolidated subsidiary (1) [1]   (13,944) 0
Net cash provided by (used in) investing activities   (15,492) 5,325
Cash flows from financing activities:      
Issuance of common stock and treasury stock upon exercise of stock options   1,477 1,243
Repayment of short-term loans   (219)
Purchase of treasury stock   (3,736) 0
Net cash provided by (used in) financing activities   (2,478) 1,243
Increase (decrease) in cash and cash equivalents   (12,037) 6,254
Cash and cash equivalents at the beginning of the year   28,737 12,639
Erosion due to exchange rate differences   (52) 1
Cash and cash equivalents at the end of the year 16,648 16,648 $ 18,894
Goodwill 13,069 13,069  
SoundChip [Member]      
Cash flows from financing activities:      
Working capital, excluding cash and cash equivalents (194) (194)  
Property and equipment 456 456  
Prepaid employees’ retention expenses 2,000 2,000  
Deferred tax liability (1,121) (1,121)  
Other long-term liability (1,945) (1,945)  
Goodwill 6,826 6,826  
Net assets acquired 13,944 13,944  
SoundChip [Member] | Developed Technology Rights [Member]      
Cash flows from financing activities:      
Developed technology 7,189 7,189  
SoundChip [Member] | Customer-Related Intangible Assets [Member]      
Cash flows from financing activities:      
Developed technology 678 678  
SoundChip [Member] | Backlog [Member]      
Cash flows from financing activities:      
Developed technology $ 55 $ 55  
[1] During the third quarter of 2020, the Company completed the acquisition of SoundChip S.A. (“SoundChip”), a Swiss private company. The net fair value of the assets acquired, and the liabilities assumed, on the date of acquisition, was as follows Statement of Cash Flows Working capital, excluding cash and cash equivalents $ (194 ) Property and equipment 456 Prepaid employees’ retention expenses 2,000 Developed technology 7,189 Customer relationships 678 Backlog 55 Deferred tax liability (1,121 ) Other long-term liability (1,945 ) Goodwill 6,826 $ 13,944