Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Convertible preferred shares and shareholders??? (deficit) equity

v3.22.1
Convertible preferred shares and shareholders’ (deficit) equity
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Convertible preferred shares and shareholders’ deficit Convertible preferred shares and shareholders’ (deficit) equity
Upon completion of the IPO, all 50,657,042 outstanding convertible preferred shares were automatically converted into an equivalent number of Ordinary Shares on a one-to-one basis and their carrying value of $135,810 was reclassified into shareholders’ equity. As of December 31, 2021, there were no convertible preferred shares issued and outstanding.
The Company’s authorized, issued and outstanding convertible Preferred Shares and Ordinary Shares capital as of December 31, 2020 and 2021 consisted of the following:
December 31, 2020
Number
of Shares Authorized		 Number of Shares Issued Number of Shares Issued and Outstanding Par
Value		 Carrying
Value		 Liquidation
Preference
Ordinary Shares,
NIS 0.01 par value
 79,176,826  15,328,449  15,326,281  $ 42  $ —  $ — 
Preferred A-1 Shares,
NIS 0.01 par value
 2,500,000  2,500,000  2,500,000  7  94  150 
Preferred A-2 Shares,
NIS 0.01 par value
 5,051,000  5,051,000  5,051,000  13  364  545 
Preferred A-3 Shares,
NIS 0.01 par value
 3,929,000  3,929,000  3,929,000  10  422  790 
Preferred A-4 Shares,
NIS 0.01 par value
 6,599,000  6,599,000  6,599,000  17  1,815  2,722 
Preferred A-5 Shares,
NIS 0.01 par value
 1,247,000  1,247,000  1,247,000  3  150  224 
Preferred A-6 Shares,
NIS 0.01 par value
 465,000  465,000  465,000  1  93  140 
Preferred A-7 Shares,
NIS 0.01 par value
 4,672,000  4,672,000  4,672,000  12  3,387  5,081 
Preferred A-8 Shares,
NIS 0.01 par value
 5,267,000  5,267,000  5,267,000  14  7,990  11,985 
Preferred A-9 Shares,
NIS 0.01 par value
 4,601,230  4,601,230  4,601,230  12  15,000  22,500 
Preferred A-10 Shares,
NIS 0.01 par value
 3,151,596  3,151,596  3,151,596  8  20,000  30,000 
Preferred B Shares,
NIS 0.01 par value
 8,303,888  8,303,888  8,303,888  24  46,710  62,346 
Preferred C Shares,
NIS 0.01 par value
 6,090,506  4,870,328  4,870,328  15  39,785  66,000 
Total Shares 131,054,046  65,985,491  65,983,323  $ 178  $ 135,810  $ 202,483 
December 31, 2021
Number
of Shares Authorized		 Number of Shares Issued Number of Shares Issued and Outstanding Par
Value		 Carrying
Value		 Liquidation
Preference
Ordinary Shares,
NIS 0.01 par value
 500,000,000  74,847,609  74,845,441  $ 205  $ —  $ — 
Total Shares 500,000,000  74,847,609  74,845,441  $ 205  $ —  $ — 
Voting rights
The Ordinary Shares carry voting rights equal to one vote per share.
Dividends
Any dividends that are declared and distributed are payable to the shareholders in proportion to the number of shares then held by them.
Under Israeli law, a company may declare dividends only out of retained earnings or earnings over the two most recent fiscal years, whichever is higher, provided that the company reasonably believes that the dividend will not render it unable to meet its current or foreseeable obligations when due.
Increase in authorized capital
In October 2020, the Company approved an increase in its authorized Ordinary Share capital of 7,866,574 shares.
In April 2021, the Company approved an increase in its authorized Ordinary Share capital to a total authorized shares of 500,000,000 Ordinary Shares.
Issuance of Preferred C Shares
In October 2020, the Company entered into a share purchase agreement pursuant to which the Company issued to the purchasers an aggregate 4,870,328 Preferred C Shares at a price of $8.213 per share for total gross consideration of $40,000, net of issuance expenses of $215 (the “Preferred C Financing”).
Secondary transactions
During the years ended December 31, 2019 and 2020, the Company facilitated several secondary transactions, in which certain employees and shareholders, sold a portion of their Ordinary Shares and Preferred Shares to other shareholders. The Company recorded share-based compensation expenses for the amount realized by the employees in excess of the estimated fair value of their respective shares. In addition, the Company recorded a deemed dividend for the amount paid to other shareholders, in excess of the estimated fair value of their respective shares. The total amount resulted in $60 and $2,109 of incremental share-based compensation expense for the year ended December 31, 2019 and 2020, respectively, and $0 and $825 of deemed dividend for the years ended December 31, 2019 and 2020, respectively. In 2021, there were no secondary transactions that were facilitated by the Company.
Convertible preferred shares and shareholders’ deficit Convertible preferred shares and shareholders’ (deficit) equity
Upon completion of the IPO, all 50,657,042 outstanding convertible preferred shares were automatically converted into an equivalent number of Ordinary Shares on a one-to-one basis and their carrying value of $135,810 was reclassified into shareholders’ equity. As of December 31, 2021, there were no convertible preferred shares issued and outstanding.
The Company’s authorized, issued and outstanding convertible Preferred Shares and Ordinary Shares capital as of December 31, 2020 and 2021 consisted of the following:
December 31, 2020
Number
of Shares Authorized		 Number of Shares Issued Number of Shares Issued and Outstanding Par
Value		 Carrying
Value		 Liquidation
Preference
Ordinary Shares,
NIS 0.01 par value
 79,176,826  15,328,449  15,326,281  $ 42  $ —  $ — 
Preferred A-1 Shares,
NIS 0.01 par value
 2,500,000  2,500,000  2,500,000  7  94  150 
Preferred A-2 Shares,
NIS 0.01 par value
 5,051,000  5,051,000  5,051,000  13  364  545 
Preferred A-3 Shares,
NIS 0.01 par value
 3,929,000  3,929,000  3,929,000  10  422  790 
Preferred A-4 Shares,
NIS 0.01 par value
 6,599,000  6,599,000  6,599,000  17  1,815  2,722 
Preferred A-5 Shares,
NIS 0.01 par value
 1,247,000  1,247,000  1,247,000  3  150  224 
Preferred A-6 Shares,
NIS 0.01 par value
 465,000  465,000  465,000  1  93  140 
Preferred A-7 Shares,
NIS 0.01 par value
 4,672,000  4,672,000  4,672,000  12  3,387  5,081 
Preferred A-8 Shares,
NIS 0.01 par value
 5,267,000  5,267,000  5,267,000  14  7,990  11,985 
Preferred A-9 Shares,
NIS 0.01 par value
 4,601,230  4,601,230  4,601,230  12  15,000  22,500 
Preferred A-10 Shares,
NIS 0.01 par value
 3,151,596  3,151,596  3,151,596  8  20,000  30,000 
Preferred B Shares,
NIS 0.01 par value
 8,303,888  8,303,888  8,303,888  24  46,710  62,346 
Preferred C Shares,
NIS 0.01 par value
 6,090,506  4,870,328  4,870,328  15  39,785  66,000 
Total Shares 131,054,046  65,985,491  65,983,323  $ 178  $ 135,810  $ 202,483 
December 31, 2021
Number
of Shares Authorized		 Number of Shares Issued Number of Shares Issued and Outstanding Par
Value		 Carrying
Value		 Liquidation
Preference
Ordinary Shares,
NIS 0.01 par value
 500,000,000  74,847,609  74,845,441  $ 205  $ —  $ — 
Total Shares 500,000,000  74,847,609  74,845,441  $ 205  $ —  $ — 
Voting rights
The Ordinary Shares carry voting rights equal to one vote per share.
Dividends
Any dividends that are declared and distributed are payable to the shareholders in proportion to the number of shares then held by them.
Under Israeli law, a company may declare dividends only out of retained earnings or earnings over the two most recent fiscal years, whichever is higher, provided that the company reasonably believes that the dividend will not render it unable to meet its current or foreseeable obligations when due.
Increase in authorized capital
In October 2020, the Company approved an increase in its authorized Ordinary Share capital of 7,866,574 shares.
In April 2021, the Company approved an increase in its authorized Ordinary Share capital to a total authorized shares of 500,000,000 Ordinary Shares.
Issuance of Preferred C Shares
In October 2020, the Company entered into a share purchase agreement pursuant to which the Company issued to the purchasers an aggregate 4,870,328 Preferred C Shares at a price of $8.213 per share for total gross consideration of $40,000, net of issuance expenses of $215 (the “Preferred C Financing”).
Secondary transactions
During the years ended December 31, 2019 and 2020, the Company facilitated several secondary transactions, in which certain employees and shareholders, sold a portion of their Ordinary Shares and Preferred Shares to other shareholders. The Company recorded share-based compensation expenses for the amount realized by the employees in excess of the estimated fair value of their respective shares. In addition, the Company recorded a deemed dividend for the amount paid to other shareholders, in excess of the estimated fair value of their respective shares. The total amount resulted in $60 and $2,109 of incremental share-based compensation expense for the year ended December 31, 2019 and 2020, respectively, and $0 and $825 of deemed dividend for the years ended December 31, 2019 and 2020, respectively. In 2021, there were no secondary transactions that were facilitated by the Company.