0001178913-19-002642 | 10-Q | XBRL Viewer | Solaredge Technologies INC

(524)

Balance (in shares) at Mar. 31, 2018

35,686

Balance at Mar. 31, 2018

$ 4

343,356

(1,135)

97,986

440,211

44,897,108

Balance at Dec. 31, 2017

$ 4

331,902

(611)

66,172

397,467

Balance (in shares) at Dec. 31, 2017

43,812,601

Balance (in shares) at Sep. 30, 2018

115,897

Balance at Sep. 30, 2018

$ 5

361,744

(983)

178,197

538,963

45,750,400

Balance at Mar. 31, 2018

$ 4

343,356

(1,135)

97,986

440,211

Balance (in shares) at Mar. 31, 2018

44,897,108

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards

^[1]

2,986

Issuance of Common Stock upon exercise of employee and non-employee stock options, shares

601,306

Stock-based compensation expenses to employees and non-employee consultants

7,128

(3)

Balance (in shares) at Jun. 30, 2018

34,568

Balance at Jun. 30, 2018

$ 5

353,470

(1,138)

132,554

484,891

45,498,414

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards

^[1]

324

Issuance of Common Stock upon exercise of employee and non-employee stock options, shares

251,986

Stock-based compensation expenses to employees and non-employee consultants

7,950

155

Balance (in shares) at Sep. 30, 2018

45,643

Balance at Sep. 30, 2018

$ 5

361,744

(983)

178,197

538,963

45,750,400

Balance at Dec. 31, 2018

$ 5

371,794

(524)

191,133

562,408

8,318

570,726

Balance (in shares) at Dec. 31, 2018

46,052,802

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards

^[1]

309

Issuance of Common Stock upon exercise of employee and non-employee stock options, shares

254,515

Stock-based compensation expenses to employees and non-employee consultants

9,704

Consideration in common stock related to business combination

^[1]

34,601

Consideration in common stock related to business combination, shares

1,194,046

Non-controlling interests related to business combination

67,734

977

(2,964)

(1,987)

(696)

(849)

(1,545)

Balance (in shares) at Mar. 31, 2019

19,016

(1,041)

17,975

Balance at Mar. 31, 2019

$ 5

417,385

(1,220)

210,149

626,319

71,198

697,517

47,501,363

Balance at Dec. 31, 2018

$ 5

371,794

(524)

191,133

562,408

8,318

570,726

Balance (in shares) at Dec. 31, 2018

46,052,802

67,089

Balance (in shares) at Sep. 30, 2019

93,771

Balance at Sep. 30, 2019

$ 5

450,459

(3,356)

284,904

732,012

5,176

737,188

48,576,288

Balance at Mar. 31, 2019

$ 5

417,385

(1,220)

210,149

626,319

71,198

697,517

Balance (in shares) at Mar. 31, 2019

47,501,363

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards

3,455

Issuance of Common Stock upon exercise of employee and non-employee stock options, shares

466,062

Stock-based compensation expenses to employees and non-employee consultants

11,372

(528)

(65,551)

(66,079)

325

545

870

Balance (in shares) at Jun. 30, 2019

33,128

(215)

32,913

Balance at Jun. 30, 2019

$ 5

431,684

(895)

243,277

674,071

5,977

680,048

47,967,425

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards

1,176

Issuance of Common Stock upon exercise of employee and non-employee stock options, shares

608,863

Stock-based compensation expenses to employees and non-employee consultants

17,609

(10)

(612)

(622)

(2,461)

(286)

(2,747)

Balance (in shares) at Sep. 30, 2019

41,627

41,724

Balance at Sep. 30, 2019

$ 5

$ 450,459

$ (3,356)

$ 284,904

$ 732,012

$ 5,176

$ 737,188

48,576,288

[1]	Represents an amount lower than $1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows provided by operating activities:
Net income	$ 92,612	$ 115,897
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	12,532	7,997
Amortization of intangible assets	7,514	404
Amortization of premium and accretion of discount on available-for-sale marketable securities		1,242
Stock-based compensation	38,685	21,927
Loss from disposal of assets	566	64
Realized gain from cash flow hedge		(9)
Realized loss from sale of available-for-sale marketable securities	91
Changes in assets and liabilities:
Inventories, net	15,746	(18,120)
Prepaid expenses and other assets	(19,795)	(4,800)
Trade receivables, net	(114,572)	(42,418)
Operating lease right-of-use assets and liabilities, net and effect of exchange rate differences	2,138	(222)
Deferred tax assets and liabilities, net	(4,923)	(4,789)
Trade payables, net	21,301	14,006
Employees and payroll accruals	15,329	1,200
Warranty obligations	49,633	28,847
Deferred revenues	19,516	21,576
Other liabilities	39,561	(597)
Net cash provided by operating activities	175,934	142,205
Cash flows from investing activities:
Business combination, net of cash acquired	(38,435)	(11,223)
Purchase of property, plant and equipment	(39,679)	(30,051)
Withdrawal from (investment in) bank deposits	4,101	(8,123)
Investment in restricted bank deposits	(243)	(201)
Investment in available-for-sale marketable securities	(103,711)	(143,150)
Proceeds from sales and maturities of available-for-sale marketable securities	119,570	71,632
Net cash used in investing activities	(58,397)	(121,116)
Cash flows from financing activities:
Proceeds from borrowing loans	232
Repayment of bank loans, net	(5,142)
Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards	4,940	7,915
Purchase of land and building under finance lease	(1,248)
Change in non-controlling interests	(67,089)
Net cash provided by (used in) financing activities	(68,307)	7,915
Increase in cash and cash equivalents and restricted cash	49,230	29,004
Cash, cash equivalents and restricted cash at the beginning of the period	187,764	163,163
Effect of exchange rate differences on cash, cash equivalents and restricted cash	10,348	731
Cash, cash equivalents and restricted cash at the end of the period	247,342	192,898
Supplemental disclosure of non-cash activities:
Operating lease, right of use assets	$ 36,174

GENERAL

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL

NOTE 1:-GENERAL

a.SolarEdge Technologies, Inc. (the “Company”) and its subsidiaries design, develop, and sell an intelligent inverter solution designed to maximize power generation at the individual photovoltaic (“PV”) module level while lowering the cost of energy produced by the solar PV system and providing comprehensive and advanced safety features. The Company’s products consist mainly of (i) power optimizers designed to maximize energy throughput from each and every module through constant tracking of Maximum Power Point individually per module, (ii) inverters which invert direct current (DC) from the PV module to alternating current (AC), (iii) a related cloud-based monitoring platform, that collects and processes information from the power optimizers and inverters of a solar PV system to enable customers and system owners as applicable, to monitor and manage the solar PV systems and (iv) a storage solution that is used to increase energy independence and maximize self-consumption for homeowners by utilizing a battery that is sold separately by third party manufacturers, to store and supply power as needed (the “StorEdge solution”). The StorEdge solution is designed to provide smart energy functions such as maximizing self-consumption, Time-of-Use programming for desired hours of the day, and home energy backup solutions.

The Company and its subsidiaries sell their products worldwide through large distributors and electrical equipment wholesalers to smaller solar installers, as well as directly to large solar installers and Engineering, Procurement and Construction firms (“EPCs”).

In July and October 2018, the Company completed the acquisitions ("Gamatronic Acquisition") of substantially all of the assets and activities of Gamatronic Electronic Industries Ltd. ("Gamatronic IL") and all of the outstanding shares of its wholly owned subsidiary Gamatronic (UK) Limited (“Gamatronic UK”), respectively. Both companies ("UPS Division") are providers and manufacturers of Uninterruptible Power Supplies ("UPS") devices.

On October 17, 2018, the Company completed the acquisition of 74.5% of the outstanding common shares and voting rights of Kokam Co., Ltd. (“Kokam”), a Korean company whose shares are traded on the Korean OTC market, a provider of Lithium-ion cells, batteries and energy storage solutions. From October 17, 2018 and through September 30, 2019 (unaudited), the Company increased its shareholdings of Kokam to 94.3%.

On January 24, 2019, the Company completed the acquisition of 56.8% of the outstanding common shares and voting rights of S.M.R.E S.p.A (“SMRE”), an Italian company whose shares were traded on the Italian AIM, a provider of innovative integrated powertrain technology and electronics for electric vehicles. Between January 24, 2019 and September 30, 2019 (unaudited), the Company increased its shareholdings of SMRE to 99.8% (see Note 2).

b.New accounting pronouncements not yet effective:

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". ASU 2017-04 was issued to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The amendments in ASU 2017-04 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company is in the process of evaluating the potential impact of this pronouncement.

F - 12

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 1:-GENERAL (Cont.)

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in a more timely recognition of losses. The Company will adopt Topic 326 effective January 1, 2020. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated balance sheets, statements of income and cash flows.

c.Recently issued and adopted pronouncements:

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases". Topic 842 supersedes the lease requirements in Accounting Standards Codification (ASC) Topic 840, "Leases". Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. ASU No. 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. In July 2018, the FASB issued amendments in ASU 2018-11, which provide a transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the earliest comparative period presented, or retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company has elected to apply the standard retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company has also elected certain relief options offered in ASU 2016-02 including certain available transitional practical expedients. The Company adopted Topic 842 effective January 1, 2019. The interim consolidated financial statements for the nine months ended September 30, 2019 are presented under the new standard, while the comparative periods are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy (See Note 7).

d.Basis of Presentation:

The accompanying unaudited interim consolidated interim financial statements have been prepared in accordance with Article 10 of Regulation S-X, “Interim Financial Statements” and the rules and regulations for Form 10-Q of the Securities and Exchange Commission (the “SEC”). Pursuant to those rules and regulations, the Company has condensed or omitted certain information and disclosures in footnotes that it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).

In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its condensed consolidated financial position, results of operations, and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year.

The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2018, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2019, have been applied consistently in these unaudited interim consolidated financial statements, except for the adoption of ASU No. 2016-02, “Leases (Topic 842) (see Note 1c).

F - 13

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 1:-GENERAL (Cont.)

The Company depends primarily on one contract manufacturer and several limited or single source component suppliers, and is in the process of opening an additional site with this contract manufacturer and its own manufacturing site. Reliance on these vendors makes the Company vulnerable to possible capacity constraints and reduced control over component availability, delivery schedules, manufacturing yields, and costs.

As of September 30, 2019 (unaudited) and December 31, 2018, one and three vendors collectively accounted for 59.2% and 58.8% of the Company’s total trade payables, respectively.

e.Accounting for stock-based compensation:

Some of the RSUs granted are subject to certain performance criteria’s (“PSUs”): accordingly, compensation expense for PSUs are recognized when it becomes probable that the related performance conditions have been satisfied.

f.Non recurring expenses:

On August 25, 2019, the Company announced the untimely death of Mr. Guy Sella, Founder, who had served as CEO and Chairman of the Board of Directors until shortly before his passing. For the three months ended September 30, 2019, the Company recognized non-recurring expenses in the amount of $8,305 related to payroll, bonus and employees acceleration of stock-based compensation related to Mr. Sella’s passing.

g.Certain prior period amounts have been reclassified to conform to the current period presentation.

BUSINESS COMBINATION

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

BUSINESS COMBINATION

NOTE 2:-BUSINESS COMBINATION

S.M.R.E

On January 24, 2019, the Company completed the acquisition of 56.8% of the outstanding common shares and voting rights of SMRE, a provider of innovative integrated powertrain technology and electronics for electric vehicles for $73,036, net of cash acquired, out of which $42,240 was paid in cash and $34,601 was paid in shares of SolarEdge common stock (the “SMRE Acquisition”).

As part of the SMRE Acquisition, the Company issued 334,096 PSUs that are subject to certain performance goals and a vesting period, in the aggregate amount of $13,444 which will be expensed in the condensed consolidated statements of operation in general and administrative expenses line item (see Note 9).

As of January 24, 2019 (unaudited), the fair value of the 43.2% non-controlling interests in SMRE was estimated to be $67,733. The fair value of the non-controlling interests was valued based on and at the transaction price.

The primary reason for the SMRE Acquisition was to acquire technology and customer relationships and to expand and diversify the Company’s business by entering into the electric vehicles market.

The Company determined that the SMRE Acquisition will be accounted for as a business combination in accordance with ASC 805 "Business Combinations".

F - 14

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 2:- BUSINESS COMBINATION (Cont.)

During the period from the SMRE Acquisition through September 30, 2019 (unaudited), the Company purchased additional common shares of SMRE in the open market and through a tender offer in a total amount of $66,562. As of September 30, 2019 (unaudited), the Company holds 99.8% of the outstanding common shares and voting rights of SMRE and such company’s shares are delisted from the Italian Alternative Investment Market (“AIM”).

The amounts of revenue and net loss of SMRE included in the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2019 (unaudited):

Three

months

ended

Nine months ended

September 30, 2019

(Unaudited)

Revenue

$

4,235

$

12,485

Net loss

$

4,136

$

11,403

The following table summarizes the preliminary estimated purchase price allocation of the business combination completed during the nine months ended September 30, 2019 (unaudited):

Components of Purchase Price:

Cash

$

42,240

Less cash acquired

(3,805

)

Common stock

34,601

Total purchase price

$

73,036

Allocation of Purchase Price:

Total net identifiable assets

$

7,947

Total identifiable intangible assets, net of deferred tax liabilities and Goodwill (1)

132,822

Non-controlling interest

$

(67,733

)

Total purchase price allocation (2)

$

73,036

(1)

The intangible assets consist primarily of technology, trade name and customer relationships.

(2)

The Company expects to complete the preliminary estimated purchase price allocation during the measurement period of one year from January 24, 2019. Fair values that are still under review include, among others, values assigned to identifiable intangible assets, goodwill, deferred income taxes and contingent liabilities.

During the three months ended September 30, 2019 (unaudited), there were no acquisition-related costs. During the nine months ended September 30, 2019 (unaudited), the Company recognized acquisition-related costs of $604.

The purchase price allocation for Kokam business combination completed during the year ended December 31, 2018 is still preliminary as of September 30, 2019 (unaudited).

As of September 30, 2019, the Gamatronic Acquisition purchase price allocation is final.

The following table represents the pro-forma (unaudited) condensed consolidated statements of income as if all acquisitions completed during the year ended December 31, 2018 and the nine months ended September 30, 2019 (unaudited), had been included in the condensed consolidated statements of income of the Company for the three and nine months ended September 30, 2019 (unaudited) and 2018 (unaudited):

F - 15

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 2:-BUSINESS COMBINATION (Cont.)

Three months ended

September 30,

Nine months ended

September 30,

2019

2018

2019

2018

(Unaudited)

(Unaudited)

Revenue

$

410,556

$

254,433

$

1,008,509

$

734,758

Net income

$

41,724

$

39,748

$

91,247

$

95,411

The pro-forma results have been calculated after applying the Company’s accounting policies and adjusting the results of all acquisitions to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied since the acquisitions date, together with the consequential tax effects.

The pro-forma results are based on estimates and assumptions, which the Company believes are reasonable. The pro-forma results are not the results that would have been realized had the acquisitions actually occurred on January 1, 2018 and 2019, and are not necessarily indicative of the Company’s condensed consolidated statements of income in future periods.

INTANGIBLE ASSETS AND GOODWILL

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

NOTE 3:-INTANGIBLE ASSETS AND GOODWILL

Acquired intangible assets and goodwill consisted of the following:

As of

September 30, 2019

As of

December 31, 2018

(Unaudited)

Intangible assets with finite lived:

Current technology

$

28,775

$

30,821

Customer relationships

3,640

3,857

Trade names

3,456

3,721

Patents

1,400

1,400

Gross intangible assets

37,271

39,799

Less - accumulated amortization

(4,538

)

(1,295

)

Total intangible assets, net

32,733

38,504

Goodwill:

Goodwill from business combinations

34,874

34,445

Foreign currency translation

(2,282

)

429

Goodwill

32,592

34,874

Intangible assets with finite lived, net and goodwill resulted from SMRE Acquisition

135,470

-

Total Intangible assets with finite lived, net and goodwill

$

200,795

$

73,378

F - 16

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 3:-INTANGIBLE ASSETS AND GOODWILL (Cont.)

Amortization expenses for the three months ended September 30, 2019 (unaudited) and 2018 (unaudited) were $2,619 and $332, respectively.

Amortization expenses for the nine months ended September 30, 2019 (unaudited) and 2018 (unaudited) were $7,514 and $404, respectively.

The reported amount of net acquisition-related intangible assets and goodwill can fluctuate due to the impact of changes in foreign currency exchange rates on intangible assets and goodwill not denominated in U.S. dollars.

Acquired finite-lived intangible assets are amortized on a straight-line basis or accelerated method over the estimated useful lives of the assets. The Company will amortize its finite-lived intangible assets over a period of 2-13 years.

INVENTORIES

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 4:-INVENTORIES

September 30,

2019

December 31,

2018

(Unaudited)

Raw materials

$

65,495

$

39,380

Work in process

22,549

18,115

Finished goods

46,239

84,024

$

134,283

$

141,519

WARRANTY OBLIGATIONS

9 Months Ended

Sep. 30, 2019

Product Warranties Disclosures [Abstract]

WARRANTY OBLIGATIONS

NOTE 5:-WARRANTY OBLIGATIONS

Changes in the Company’s product warranty obligations for the nine months ended September 30, 2019 (unaudited) and 2018 (unaudited) were as follows:

Nine months ended September 30,

2019

2018

(Unaudited)

Balance, at beginning of period

$

121,826

$

78,811

Additions and adjustments to cost of revenues

79,791

47,819

Usage and current warranty expenses

(30,263

)

(18,911

)

Balance at end of period

171,354

107,719

Less current portion

(45,887

)

(21,660

)

Long term portion

$

125,467

$

86,059

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 6:-FAIR VALUE MEASUREMENTS

In accordance with ASC 820, the Company measures its cash equivalents, foreign currency derivative contracts, and marketable securities, at fair value using the market approach valuation technique. Cash equivalents and marketable securities are classified within Level 1 or Level 2. This is because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Earn-out provision is classified within the Level 3 value hierarchy, as the valuation is based on unobservable inputs which are supported by little or no market activity.

The following table sets forth the Company’s assets that were measured at fair value as of September 30, 2019 (unaudited) and December 31, 2018, by level within the fair value hierarchy:

Fair value measurements as of

Description

Fair Value Hierarchy

September 30, 2019

December 31,

2018

(Unaudited)

Measured at fair value on a recurring basis:

Assets:

Cash equivalents:

Money market mutual funds

Level 1

$

18,004

$

1,767

Short-term marketable securities:

Corporate bonds

Level 2

85,343

110,385

Governmental bonds

Level 2

-

8,295

Long-term marketable securities:

Corporate bonds

Level 2

91,477

74,256

Governmental bonds

Level 2

1,394

-

Liabilities

Short-term Earn-out provision

Level 3

(348

)

-

Long-term Earn-out provision

Level 3

$

(523

)

$

(332

)

Commitments and Contingencies Disclosure [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

LEASES

9 Months Ended

Sep. 30, 2019

Lessee Disclosure [Abstract]

LEASES

NOTE 7:-LEASES

The Company leases offices, plants and vehicles under operating and finance leases. For leases with terms greater than 12 months, the Company records the related asset and liability at the present value of lease payments according to their term. Several of the Company’s leases include renewal options and some have termination options that are factored into the Company’s determination of the lease payments when appropriate. The Company estimates the incremental borrowing rate in order to discount the lease payments based on the information available at the lease commencement date.

F - 18

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 7:-LEASES (cont.)

The following table summarizes the Company’s lease-related assets and liabilities recorded on the condensed consolidated balance sheet:

Classification on the condensed

consolidated Balance Sheet

As of

September 30, 2019

(Unaudited)

Assets

Operating lease assets, net of lease incentive obligation

Operating lease right-of-use assets

$

34,601

Finance lease assets

Property, plant and equipment, net

1,471

Total lease assets

$

36,072

Liabilities

Operating and finance leases short term

Accrued expenses and other current liabilities

$

9,451

Operating leases long term

Operating lease liabilities

29,117

Finance leases long term

Other non-current liabilities

874

Total lease liabilities

$

39,442

Weighted average remaining lease term in years

Operating leases

4.71

Finance leases

7.51

Weighted average annual discount rate

Operating leases

1.45

%

Finance leases

2.85

%

The following table presents certain information related to the lease costs for operating and finance leases:

Three

months

ended

Nine months

ended

September 30, 2019

(Unaudited)

Finance lease cost

Amortization of leased assets

$

20

$

73

Interest on lease liabilities

12

43

Operating lease cost

2,517

7,132

Total lease cost

$

2,549

$

7,248

F - 19

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 7:-LEASES (cont.)

The following table presents supplemental cash flow information related to the lease costs for operating and finance leases:

Three months ended

Nine months ended

September 30, 2019

(Unaudited)

Cash paid for amounts included in measurement of lease liabilities

Operating cash flows for operating and finance leases

$

2,560

$

7,175

Financing cash flows for finance leases

$

1,248

$

1,248

The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years of the operating and finance lease liabilities recorded on the condensed consolidated balance sheets (unaudited):

Operating

Lease

Finance

Leases

2019

$

2,735

$

22

2020

9,691

88

2021

8,384

88

2022

7,528

88

2023

6,517

88

Thereafter

5,410

955

Total lease payments

40,265

1,329

Less: amount of lease payments representing interest

(1,774

)

(378

)

Present value of future lease payments

38,491

951

Less: current obligations under leases

(9,374

)

(77

)

Long-term lease obligations

$

29,117

$

874

COMMITMENTS AND CONTINGENT LIABILITIES

9 Months Ended

Sep. 30, 2019

COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 8:-COMMITMENTS AND CONTINGENT LIABILITIES

a.Guarantees:

As of September 30, 2019 (unaudited), contingent liabilities exist regarding guarantees in the amount of $2,036, $57, $184, $388 and $13,353 in respect of office rent lease agreements, customs transactions, credit card limits, capital expenditure and bank loans, respectively.

F - 20

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 8:- COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)

b.Contractual purchase obligations:

The Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories held by contract manufacturers and purchase orders initiated by the contract manufacturers and suppliers, which cannot be cancelled without penalty. The Company utilizes third parties to manufacture its products. In addition, it acquires raw materials or other goods and services, including product components, by issuing to suppliers authorizations to purchase based on its projected demand and manufacturing needs.

As of September 30, 2019 (unaudited), the Company had non-cancellable purchase obligations totaling approximately $362,968 out of which the Company already recorded a provision for loss in the amount of $2,231.

As of September 30, 2019 (unaudited), the Company had contractual obligations for capital expenditures totaling approximately $75,073. These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing.

c.Legal claims:

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 May 2019 (unaudited), the Company received notice that Huawei Technologies Co., Ltd., a Chinese entity, has filed three lawsuits in the Guangzhou intellectual property court against the Company's two Chinese subsidiaries and its equipment manufacturer in China. The lawsuits allege infringement of three patents and ask for an injunction of manufacture, use, sale and offer for sale, and damage awards of approximately $4.3 million. In response to the lawsuits, the Company initiated invalidation proceedings against Huawei’s three patents. The Company believes that it has meritorious defenses to the claims asserted and intends to vigorously defend against these lawsuits.

In August 2019, the Company was served with a lawsuit by certain former shareholders of SMRE, against its Italian subsidiary that purchased the shares of SMRE in the tender offer which followed the SMRE Acquisition. The shareholders who tendered their shares are asking for the difference between the amount for which they tendered their shares (6 Euro per share) and 6.7 Euros per share, for awards of approximately $3 million. The Company believes it has meritorious defenses to the claims asserted and intends to vigorously defend against this lawsuit.

STOCK CAPITAL

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

STOCK CAPITAL

NOTE 9:-STOCK CAPITAL

a.Common Stock:

Number of shares

Authorized

Issued and outstanding

September 30,

2019

December 31,

2018

September 30,

2019

December 31,

2018

(Unaudited)

(Unaudited)

Stock of $0.0001 par value:

Common stock

125,000,000

125,000,000

48,576,288

46,052,802

b.Stock Incentive plans:

The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007. On March 31, 2015, once the Company completed its Initial Public Offering (“IPO”), the 2007 Plan was terminated and no further awards will be granted thereunder. All outstanding awards are continuing to be governed by their existing terms and 379,358 available options for future grant were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan.

The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan provides for the grant of options, RSUs and other stock-based awards to directors, employees, officers, and consultants of the Company and its Subsidiaries. As of September 30, 2019 (unaudited), a total of 10,383,357 shares of common stock were reserved for issuance under the 2015 Plan (the “Share Reserve”).

The Share Reserve will automatically increase on January 1st of each year during the term of the 2015 Plan commencing on January 1st of the year following the year in which the 2015 Plan becomes effective in an amount equal to five percent (5%) of the total number of shares of capital stock outstanding on December 31st of the preceding calendar year; provided, however, that our board of directors may determine that there will not be a January 1st increase in the Share Reserve in a given year or that the increase will be less than five percent (5%) of the shares of capital stock outstanding on the preceding December 31st.

The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is ten million (10,000,000). As of September 30, 2019 (unaudited), an aggregate of 8,686,589 shares of common stock are still available for future grant under the 2015 Plan.

F - 22

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 9:-STOCK CAPITAL (Cont.)

c.Options granted to employees and directors:

A summary of the activity in the share options granted to employees and directors for the nine months ended September 30, 2019 (unaudited) and related information follows:

Number

of

Options

Weighted

average

exercise

price

Weighted

average

remaining

contractual

term

in years

Aggregate intrinsic Value

Outstanding as of December 31, 2018

2,401,893

11.04

6.19

58,323

Granted

267,852

36.15

Exercised

(377,685

)

6.40

Forfeited and expired

(11,324

)

13.84

Outstanding as of September 30, 2019

2,280,736

14.74

6.07

157,318

Vested and expected to vest as of September 30, 2019

2,253,031

14.61

6.04

155,705

Exercisable as of September 30, 2019

1,910,609

12.21

5.65

136,632

The aggregate intrinsic value represents the total intrinsic value (the difference between the fair value of the Company’s common stock as of the last day of each period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last day of each period. The total intrinsic value of options exercised during the nine months ended September 30, 2019 (unaudited) was $23,907.

The weighted average grant date fair values of options granted to employees and executive directors during the nine months ended September 30, 2019 (unaudited) was $19.83.

d.A summary of the activity in the RSUs (excluding PSUs) granted to employees and members of the board of directors for the nine months ended September 30, 2019 (unaudited) is as follows:

Number of

RSUs

Weighted

average

grant date

fair value

Unvested as of December 31, 2018

2,807,232

34.40

Granted

608,112

51.55

Vested

(858,914

)

32.12

Forfeited

(225,800

)

38.14

Unvested as of September 30, 2019 (unaudited)

2,330,630

39.35

F - 23

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 9:-STOCK CAPITAL (Cont.)

As part of the SMRE Acquisition (unaudited), the Company granted 334,096 PSUs that are subject to certain performance goals and a vesting period. The PSUs grant date fair value is $40.24.

During the nine months ended September 30, 2019 (unaudited), the Company recognized expenses in the amount of $2,521 related to PSU’S vesting that were expensed in the condensed consolidated statement of operations in general and administrative expenses line item.

e.Options and RSUs issued to non-employee consultants:

The Company has granted options and RSUs to purchase common shares to non-employee consultants as of September 2019 (unaudited) as follows:

Issuance

Date

Outstanding

as of

September 30,

2019

Exercise

price

Exercisable

as of

September 30,

2019

Options exercisable

through

2014

5,249

$3.51 - $5.01

5,137

October 29, 2024

2016

3,084

$0.00 - $15.34

-

September 21, 2026

2017

10,376

$0.00 - $13.70

-

March 15, 2027

2018

16,012

$0.00

-

2019

13,912

$0.00

-

48,633

5,137

The Company had accounted for its options and RSUs granted to non-employee consultants under the fair value method of ASC 505-50 (“Equity-Based Payments to Non-Employees”).

In connection with the grant of stock options and RSUs to non-employee consultants, the Company recorded stock compensation expenses during the nine months ended September 30, 2019 (unaudited) and 2018 (unaudited) in the amount of $525 and $1,070, respectively.

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

The Company adopted an Employee Stock Purchase Plan (the “ESPP”) effective upon the consummation of the IPO. As of September 30, 2019 (unaudited), a total of 2,199,808 shares were reserved for issuance under this plan. The number of shares of common stock reserved for issuance under the ESPP will increase automatically on January 1st of each year, for ten years, by the lesser of 1% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or 487,643 shares. However, the Company’s board of directors may reduce the amount of the increase in any particular year at their discretion, including a reduction to zero.

The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 10% of their salaries to purchase common stock shares up to an aggregate limit of $10 per participant for every six months 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 September 30, 2019 (unaudited), 460,455 common stock shares had been purchased under the ESPP.

F - 24

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 9:-STOCK CAPITAL (Cont.)

As of September 30, 2019 (unaudited), 1,739,353 common stock shares were available for future issuance under the ESPP.

In accordance with ASC No. 718, the ESPP is compensatory and as such, results in recognition of compensation cost.

g.Stock-based compensation expense for employees and non-employee consultants:

The Company recognized stock-based compensation expenses related to stock options, RSUs and PSUs granted to employees and non-employee consultants and ESPP in the condensed consolidated statement of income for the three and nine months ended September 30, 2019 (unaudited) and 2018 (unaudited), as follows:

Three months ended

September 30,

Nine months ended

September 30,

2019

2018

2019

2018

(Unaudited)

(Unaudited)

Cost of revenues

$

1,691

$

1,127

$

4,696

$

3,019

Research and development

4,269

2,988

11,935

7,975

Selling and marketing

2,779

2,250

7,905

6,548

General and administrative

2,628

1,585

7,907

4,385

Non-recurring expenses

6,242

-

6,242

-

Total stock-based compensation expense

$

17,609

$

7,950

$

38,685

$

21,927

As of September 30, 2019 (unaudited), there was a total unrecognized compensation expense of $103,421 related to non-vested stock-based compensation arrangements. These expenses are expected to be recognized during the period from October 1, 2019 through August 31, 2023.

BASIC AND DILUTED NET EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

BASIC AND DILUTED NET EARNINGS PER SHARE

NOTE 10:-BASIC AND DILUTED NET EARNINGS PER SHARE

Basic net earnings per share is computed by dividing the net earnings attributable to SolarEdge Technologies, Inc. by the weighted-average number of shares of common stock outstanding during the period.

Diluted net earnings per share is computed by giving effect to all potential shares of common stock, including stock options, to the extent dilutive, all in accordance with ASC No. 260, "Earnings Per Share."

334,096 and 304,725 shares were excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect for the three and nine months ended September 30, 2019 (unaudited), respectively.

No shares were excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect for the three and nine months ended September 30, 2018 (unaudited).

F - 25

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 10:-BASIC AND DILUTED NET EARNINGS PER SHARE (Cont.)

The following table presents the computation of basic and diluted net earnings per share attributable to SolarEdge Technologies, Inc. for the periods presented (in thousands, except share and per share data):

Three months ended

September 30,

Nine months ended

September 30,

2019

2018

2019

2018

(Unaudited)

(Unaudited)

Basic EPS:

Numerator:

Net income

$

41,724

$

45,643

$

92,612

$

115,897

Net loss (income) attributable to Non-controlling interests

(97

)

-

1,159

-

Net income attributable to SolarEdge Technologies, Inc.

$

41,627

$

45,643

$

93,771

$

115,897

Denominator:

Shares used in computing net earnings per share of common stock, basic

48,195,020

45,601,540

47,637,023

45,025,661

Diluted EPS:

Numerator:

Net income

$

41,724

$

45,643

$

92,612

$

115,897

Net loss (income) attributable to Non-controlling interests

(97

)

-

1,159

-

Undistributed earnings reallocated to non-vested stockholders

(270

)

-

(569

)

-

Net income attributable to SolarEdge Technologies, Inc.

$

41,357

$

45,643

$

93,202

$

115,897

Denominator:

Shares used in computing net earnings per share of common stock, basic

48,195,020

45,601,540

47,637,023

45,025,661

Weighted average effect of dilutive securities:

Non-vested PSU’S

(334,096

)

-

(304,725

)

-

Effect of stock-based awards

3,220,670

2,679,700

2,603,340

3,065,524

Shares used in computing net earnings per share of common stock, diluted

51,081,594

48,281,240

49,935,638

48,091,185

INCOME TAXES

9 Months Ended

Sep. 30, 2019

Income Taxes

INCOME TAXES

NOTE 11:-INCOME TAXES

a.Taxes on income are comprised as follows:

Three months ended

September 30,

Nine months ended

September 30,

2019

2018

2019

2018

(Unaudited)

(Unaudited)

Current year taxes

$

10,418

$

(10,524

)

$

29,327

$

1,773

Deferred tax income net, and others

(3,148

)

(1,771

)

(4,922

)

(4,789

)

Taxes on income (tax benefit)

$

7,270

$

(12,295

)

$

24,405

$

(3,016

)

b.Deferred income taxes:

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Significant components of the Company’s deferred tax liabilities and assets are as follows:

As of

September 30,

2019

As of

December 31,

2018

(Unaudited)

Total deferred tax assets

$

28,585

$

22,608

Total deferred tax liabilities

$

(19,167

)

$

(9,408

)

Recorded as:

Deferred tax assets, net

$

17,180

$

14,699

Deferred tax liabilities, net

(7,762

)

(1,499

)

Net deferred tax assets

$

9,418

$

13,200

c.Uncertain tax positions:

As of

September 30,

2019

As of

December 31,

2018

(Unaudited)

Balance at January 1,

$

8,499

$

579

Increases related to current year tax positions

1,371

8,499

Decreases related to prior year tax positions

-

(579

)

$

9,870

$

8,499

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

9 Months Ended

Sep. 30, 2019

Risks and Uncertainties [Abstract]

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

NOTE 12:-CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

a.For the three month period ended September 30, 2019 (unaudited) and 2018 (unaudited), the Company had two and one major customers that accounted for 32.3% and 15.7% of its condensed consolidated revenues, respectively.

For the nine month period ended September 30, 2019 (unaudited) and 2018 (unaudited), the Company had one major customer that accounted for 17.7% and 17.3% of its condensed consolidated revenues, respectively.

b.As of September 30, 2019 (unaudited) and as of December 31, 2018, one and two customers accounted for approximately 24.5% and 41.3%, respectively, of the Company’s net trade receivables.

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 13:-SEGMENT INFORMATION

The Company's chief operating decision maker (“CODM”) is our acting Chief Executive Officer who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis. Accordingly, the Company has determined that it has a single reportable segment - the solar segment.

Total segment assets include corporate assets, such as cash and cash equivalents, marketable securities and tax assets. Total segment assets reconciled to consolidated amounts are as follows:

As of September 30, 2019

As of December 31, 2018

(Unaudited)

Solar

$

1,266,831

$

888,672

Non-Solar

124,139

92,358

Adjustments

(53,378

)

(16,558

)

Total assets

$

1,337,592

$

964,472

BUSINESS COMBINATION (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Schedule of Operation of Acquired Entity

Three

months

ended

Nine months ended

September 30, 2019

(Unaudited)

Revenue

$

4,235

$

12,485

Net loss

$

4,136

$

11,403

Schedule of Preliminary Estimated Components and Allocations of Combined Purchase Prices

The following table summarizes the preliminary estimated purchase price allocation of the business combination completed during the nine months ended September 30, 2019 (unaudited):

Schedule of Pro-forma Condensed Consolidated Statements of Operations

INTANGIBLE ASSETS AND GOODWILL (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets and Goodwill

INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories

September 30,

2019

December 31,

2018

(Unaudited)

Raw materials

$

65,495

$

39,380

Work in process

22,549

18,115

Finished goods

46,239

84,024

$

134,283

$

141,519

WARRANTY OBLIGATIONS (Tables)

9 Months Ended

Sep. 30, 2019

Product Warranties Disclosures [Abstract]

Schedule of Warranty Obligations

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value

Schedule of Lease-related Assets and Liabilities

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

LEASES (Tables)

9 Months Ended

Sep. 30, 2019

Lessee Disclosure [Abstract]

Schedule of Information Related to Lease Costs for Finance and Operating Leases

Schedule of Supplemental Cash Flow Information Related to Leases

Schedule of Operating and Finance lease liabilities

STOCK CAPITAL (Tables)

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Composition of Common Stock Capital

Schedule of Stock Option Activity

Schedule of RSU Activity

Schedule of Options and RSUs Granted to Non-Employee Consultants

Schedule of Recognized Stock-Based Compensation Expense

Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

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-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

BASIC AND DILUTED NET EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2019

Income Taxes Tables

Schedule of Taxes on Income

Schedule of Deferred Tax Assets and Liabilities

Schedule of Uncertain Tax Positions

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Assets

GENERAL (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
GENERAL (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Jan. 24, 2019	Oct. 17, 2018
Organization Consolidation and Presentation of Financial Statements [Line Items]
Non-recurring expenses	$ 8,305		$ 8,305
Accounts Payable [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Concentration risk (as a percent)			59.20%		58.80%
Kokam [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Percentage of acquisition	94.30%		94.30%				74.50%
SMRE [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Percentage of acquisition	99.80%		99.80%			56.80%

BUSINESS COMBINATION (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 24, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Acquisition related costs				$ 604
General and administrative expenses		$ 12,214	$ 6,898	37,590	$ 17,427
Non-controlling interests		$ 5,176		5,176		$ 8,318
Business combination, net of cash acquired				$ 38,435	$ 11,223
SMRE [Member]
Percentage of acquisition	56.80%	99.80%		99.80%
Amount of investment	$ 73,036
Cash paid	42,240
Common shares, value, paid	$ 34,601
Percentage of noncontrolling interest	43.20%
Non-controlling interests	$ 67,733
Business combination, net of cash acquired				$ 66,562
SMRE [Member] \| Options [Member]
Number of shares granted	334,096
General and administrative expenses	$ 13,444

BUSINESS COMBINATION (Schedule of Operation of Acquired Entity) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net income (loss)	$ 41,724	$ 45,643	$ 92,612	$ 115,897
SMRE [Member]
Revenues	4,235		12,485
Net income (loss)	$ 4,136		$ 11,403