COMMITMENTS AND CONTINGENT LIABILITIES |
12 Months Ended | ||||||
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Dec. 31, 2022 | |||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||
| COMMITMENTS AND CONTINGENT LIABILITIES |
NOTE
19: COMMITMENTS
AND CONTINGENT LIABILITIES
As
of December 31, 2022, contingent liabilities exist regarding guarantees in the amounts of $5,655
and $1,372
in respect of office rent lease agreements and customs and other transactions, respectively.
The
Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories
and other purchase orders, which cannot be canceled without penalty. In addition, the Company acquires raw materials or other goods and
services, including product components, by issuing authorizations to its suppliers to purchase materials based on its projected demand
and manufacturing needs.
As
of December 31, 2022, the Company had non-cancelable purchase obligations totaling approximately $1,590,229,
out of which the Company recorded a provision for loss in the amount of $7,002.
As
of December 31, 2022, the Company had contractual obligations for capital expenditures totaling approximately $73,955.
These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing process
as well as capital expenditures associated with the construction of Sella 2, the Company’s second lithium-ion cell and battery factory
in Korea.
From
time to time, the Company may be involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses
its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be
reasonably estimated, the Company accrues a liability for the estimated loss. These accruals are reviewed at least quarterly and adjusted
to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a
particular matter.
In
September 2018, the Company’s German subsidiary, SolarEdge Technologies GmbH received a complaint filed by competitor SMA Solar
Technology AG (“SMA”). The complaint, filed in the District Court Düsseldorf, Germany, alleges that SolarEdge's 12.5kW
- 27.6kW inverters infringed on two of the plaintiff’s patents. SMA asserted a value in dispute of EUR 5.5
million (approximately $5,866)
for both patents. The Company challenged the validity of both patents. With respect to one of the claims, in October 2020, the German
Patent Court rendered the SMA patent invalid, the invalidity was appealed by SMA and in January 2023, the German Supreme Court upheld
the finding of invalidity. With respect to the other claim, in November 2019, the first instance court stayed the infringement proceedings
since it considered it to be highly likely that the second SMA patent would also be rendered invalid. In August 2021, the German Patent
Court rendered SMA's second patent invalid, and this invalidity has been appealed by SMA and a hearing is pending. The Company believes
that it has meritorious defenses to these claims and intends to vigorously defend against the remaining lawsuit.
On
July 28, 2022, the Company was served with complaints filed by Ampt LLC in the International Trade Commission (the “Commission”)
pursuant to Section 337 of the Tariff Act of 1930, as amended, in the District Court for the District of Delaware alleging patent infringement
against the Company and its subsidiary SolarEdge Technologies Ltd. On October 24, 2022, the complaint filed in the District Court of Delaware
was administratively stayed until the Commission's action is resolved. The Company believes that it has meritorious defenses to the complaints
and intend to vigorously defend against them.
On
November 3, 2022, the Company received notice that a class action lawsuit was filed in the U.S District Court or the Southern District
of New York against the Company, SolarEdge Technologies Ltd., the Company’s CEO and the Company’s CFO, by a purported stockholder
of the Company, alleging violations of the Federal Securities Act in connection with complaints filed against the Company by Ampt LLC,
detailed above. On February 14, 2023, the lawsuit was voluntarily withdrawn by the plaintiffs and dismissed by the court.
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