NOTE 13: STOCK CAPITAL

a. Common stock rights:

Common stock confers upon its holders the right to receive notice of, and to participate in, all general meetings of the Company, where each share of common stock shall have one vote for all purposes, to share equally, on a per share basis, in bonuses, profits, or distributions out of funds legally available therefor, and to participate in the distribution of the surplus assets of the Company in the event of liquidation of the Company.

b. Equity Incentive Plans:

The Company’s Amended and Restated 2015 Global Incentive Plan (the “2015 Plan”) became effective upon the consummation of the Company's initial public offering (the “IPO”). The 2015 Plan provided for the grant of options, restricted stock units (“RSU”), performance stock units (“PSU”), and other stock-based awards to directors, employees, officers, and non-employees of the Company. As of June 30, 2026, a total of 26,648,950 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”), an aggregate of 10,385,143 shares are still available for future grants.

Under its 2015 Plan, the Company granted PSU awards to certain employees and officers which vest upon the achievement of certain market conditions subject to their continued employment with the Company.

The market condition for the PSUs is based on either (a) the Company’s share price targets during a 30-day successive average trading price of the Company’s common stock over a three year performance period and subject to a minimum of a two year employment period following the grant date, or (b) the Company’s share price targets during a 20-day successive average trading price of the Company’s common stock over a four year performance period and subject to a minimum of a two year employment period following the grant date, or (c) total shareholder return (“TSR”) compared to the TSR of (i) for grants granted in 2024 companies listed in the S&P 500 index, and (ii) for grants granted in 2026, companies listed in the Solar Index, in each case, over a two to three year performance period. The Company uses a Monte-Carlo simulation to determine the grant date fair value for these awards, which takes into consideration the market price of a share of the Company’s common stock on the date of grant less the present value of dividends expected during the requisite service period, as well as the possible outcomes pertaining to the TSR market condition. The Company recognizes such compensation expenses on an accelerated vesting method.

A summary of the activity in stock options and related information is as follows:

	Number of options			Weighted average exercise price		Weighted average remaining contractual term in years		Aggregate intrinsic value
Outstanding as of December 31, 2025		191,187		$	49.37		1.40	$	950
Exercised		(141,584	)		27.20		-		1,769
Forfeited or expired		(18,775	)		149.39		-		-
Outstanding as of June 30, 2026		30,828		$	90.30		2.64	$	588
Vested and expected to vest as of June 30, 2026		30,828		$	90.30		2.64	$	588
Exercisable as of June 30, 2026		30,828		$	90.30		2.64	$	588

The intrinsic value is the amount by which the closing price of the Company’s common stock on June 30, 2026, or the price on the day of exercise exceeds the exercise price of the stock options, multiplied by the number of in-the-money options.

A summary of the activity in the RSUs and PSUs and related information is as follows:

	RSU					PSU
	Number of Shares Outstanding			Weighted average grant date fair value		Number of Shares Outstanding			Weighted average grant date fair value
Unvested as of December 31, 2025		3,824,774		$	34.02		841,487		$	14.00
Granted		1,560,078			65.80		646,138			26.48
Vested		(716,695	)		43.85		-			-
Forfeited		(353,124	)		36.43		(121,883	)		49.24
Unvested as of June 30, 2026		4,315,033		$	43.62		1,365,742		$	16.76

c. Employee Stock Purchase Plan (“ESPP”):

The Company adopted an ESPP effective upon the consummation of the IPO. As of June 30, 2026, a total of 5,125,666 shares were reserved for issuance under this plan.

The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use the lesser of either up to 15% of their salaries or $15,000 per participant, to purchase common stock for every six month plan. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date.

As of June 30, 2026, 3,088,005 shares of common stock have been purchased under the ESPP.

As of June 30, 2026, 2,037,661 shares of common stock were available for future issuance under the ESPP.

In accordance with ASC 718, “Compensation – Stock Compensation,” the ESPP is compensatory and, as such, results in recognition of compensation cost.

d. Stock-based compensation expenses:

The Company recognized stock-based compensation expenses related to all stock-based awards in the consolidated statement of loss for the three and six months ended June 30, 2026 and 2025, as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Stock-based compensation expenses:
Cost of revenues	$	3,693	$	4,004	$	7,300	$	8,376
Research and development, net		8,403		9,856		16,464		25,767
Sales and marketing		3,996		4,342		8,147		9,084
General and administrative		3,605		1,059		7,638		7,460
Total stock-based compensation expenses	$	19,697	$	19,261	$	39,549	$	50,687

Stock-based compensation capitalized:
Inventory	$	313	$	433	$	633	$	1,079
Other long-term assets		-		393		-		832
Total stock-based compensation capitalized	$	313	$	826	$	633	$	1,911

For the three and six months ended June 30, 2026 and 2025, no amounts of tax benefits were recorded in regard to stock-based compensation.

As of June 30, 2026, there were total unrecognized compensation expenses in the amount of $199,588 related to non-vested equity-based compensation arrangements granted. These expenses are expected to be recognized during the period from July 1, 2026, through May 31, 2030.