Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

U.S. Dollars in thousands, except per share amounts

Three months ended

March 31,

2024

2023

Unaudited

Unaudited

GAAP net loss

$  (5,448)

$  (4,872)

Equity-based compensation expense included in cost of revenues

203

206

Equity-based compensation expense included in research and development expenses

2,007

2,102

Equity-based compensation expense included in sales and marketing expenses

365

378

Equity-based compensation expense included in general and administrative expenses

996

866

Amortization of intangible assets

278

224

Costs associated with business acquisition

280

-

loss associated with the remeasurement of marketable equity securities.

60

117

Non-GAAP from discontinued operation

-

1,086

Non-GAAP net income (loss)

$  (1,259)

$  107

GAAP weighted-average number of Common Stock used in computation of diluted net loss

and loss per share (in thousands)

23,508

23,334

Weighted-average number of shares related to outstanding stock-based awards (in thousands)

-

1,021

Weighted-average number of Common Stock used in computation of diluted net income (loss)

per share, excluding the above (in thousands)

23,508

24,355

GAAP diluted loss per share

$  (0.23)

$  (0.21)

Equity-based compensation expense

$  0.15

$  0.15

Amortization of intangible assets

$  0.01

$  0.01

Costs associated with business acquisition

$  0.01

-

Income associated with the remeasurement of marketable equity securities.

$  0.01

$  0.01

Non-GAAP from discontinued operation

-

$  0.04

Non-GAAP diluted income (loss) per share

$  (0.05)

$  0.00

Three months ended

March 31,

2024

2023

Unaudited

Unaudited

GAAP Operating loss

$  (4,960)

$  (2,620)

Equity-based compensation expense included in cost of revenues

203

206

Equity-based compensation expense included in research and development expenses

2,007

2,102

Equity-based compensation expense included in sales and marketing expenses

365

378

Equity-based compensation expense included in general and administrative expenses

996

866

Amortization of intangible assets

278

224

Costs associated with business acquisition

280

-

Total non-GAAP Operating Income (loss)

Three months ended

March 31,

2024

2023

Unaudited

Unaudited

GAAP Gross Profit

$  19,569

$  22,754

GAAP Gross Margin

89 %

87 %

Equity-based compensation expense included in cost of revenues

203

206

Amortization of intangible assets    

128

70

Total Non-GAAP Gross profit

19,900

23,030

Non-GAAP Gross Margin

90 %

88 %