What changed in this filing

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Item 1. Financial Statements

2024-08-07 compared with 2024-05-09 · 305 added, 149 removed, 571 unchanged (44% of the section changed)

41 unchanged sentences

125,000,000 shares;

57,298,691 shares at

March 31, 2024 and 57,123,437 shares at December 31, 2023;

56,792,795 shares at

March 31, 2024 and 57,123,437 shares at December 31, 2023.

57,705,386 shares at June 30, 2024 and 57,123,437 shares at December 31, 2023;

56,952,022 shares at June 30, 2024 and 57,123,437 shares at December 31, 2023.

Additional paid-in capital

10 unchanged sentences

Three Months Ended

Six Months Ended

Cost of revenues

8 unchanged sentences

Financial income (expense), net

Other loss, net

Other income (loss), net

Income (loss) before income taxes

11 unchanged sentences

Three Months Ended

Six Months Ended

Net income (loss)

10 unchanged sentences

(in thousands, except per share data)

Additional paid in

Treasury stock

other comprehensive

Retained earnings

Balance as of January 1, 2024

4 unchanged sentences

Balance as of March 31, 2024

Issuance of common stock upon exercise of stock-based awards

Issuance of common stock under employee stock purchase plan

Stock based compensation

Repurchase of common stock

Capped call transactions related to notes 2029

Other comprehensive loss adjustments

Balance as of June 30, 2024

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

(in thousands, except per share data)

Additional paid in

6 unchanged sentences

Balance as of March 31, 2023

Issuance of common stock upon exercise of stock-based awards

Issuance of common stock under employee stock purchase plan

Stock based compensation

Other comprehensive loss adjustments

Balance as of June 30, 2023

* Represents an amount less than $1.

3 unchanged sentences

(in thousands, except per share data)

Three Months Ended

Six Months Ended

Cash flows from operating activities :

2 unchanged sentences

Depreciation and amortization

Loss (gain) from exchange rate fluctuations

Stock-based compensation expenses

Deferred income taxes, net

Gain from repurchasing of convertible notes

Loss (gain) from exchange rate fluctuations

Changes in assets and liabilities:

4 unchanged sentences

Trade payables, net

Employees and payroll accruals

Warranty obligations

2 unchanged sentences

Accrued expenses and other liabilities, net

Net cash provided by (used in) operating activities

Net cash used in operating activities

Cash flows from investing activities :

Investment in available-for-sale marketable securities

Proceeds from sales and maturities of available-for-sale marketable securities

Proceeds from maturities of available-for-sale marketable securities

Proceeds from sales of available-for-sale marketable securities

Purchase of property, plant and equipment

Business combinations, net of cash acquired

Purchase of intangible assets

Disbursements for loans receivables

Investment in privately-held companies

Proceeds from loan receivables

Other investing activities

1 unchanged sentence

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Cont.)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands, except per share data )

Three Months Ended

Six Months Ended

Cash flows from financing activities :

Repurchase of common stock

Payments on account of repurchase of common stock

Partial repurchase of Notes 2025

Proceeds from issuance of Notes 2029, net of issuance costs

Capped call transactions related to Notes 2029

Tax withholding in connection with stock-based awards, net

6 unchanged sentences

Supplemental disclosure of non-cash activities :

Purchase of intangible assets and business combinations

Right-of-use asset recognized with a corresponding lease liability

20 unchanged sentences

Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties.

In accordance with ASC 360-10, the Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that long-lived assets may be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets.

During the second quarter of 2024, and close to the issuance date of the convertible Notes 2029, although the Company's share price deteriorated and albeit the slowdown in the Company's operations, the Company determined that no impairment was recorded.

In addition to other events and circumstances, the Company believes that it is reasonably possible to estimate that the undiscounted cash flows may change in the near term and could result in the impairment of those long-lived assets to fair value.

The Company's estimate of cash flows may change in the near future because of the losses incurred by the group's assets related to the Solar and Energy Storage segments due to high inventory levels in the channels which leads to slower than expected sales.

Concentrations of supply risks:

1 unchanged sentence

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 March 31, 2024, and December 31, 2023, two contract manufacturers collectively accounted for 44.9 % and 58.5 % of the Company’s total trade payables, net, respectively.

As of June 30, 2024 one of our contract manufacturer accounts for 12.9 % of the Company’s total trade payables, net.

As of December 31, 2023, two contract manufacturers collectively accounted for 58.5 % of the Company’s total trade payables, net.

The Company's own manufacturing facility, Sella 1, located in the North of Israel, is primarily used in the Company's Solar segment operations.

4 unchanged sentences

New accounting standards updates:

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280):

In November 2023, the Financial Accounting Standards Board (" FASB ") issued ASU 2023-07, “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures” (“ASU 2023-07”).

10 unchanged sentences

The Company is currently evaluating the impact of adopting ASU 2023-09.

INVESTMENTS IN PRIVATELY-HELD COMPANIES

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

BUSINESS COMBINATIONS

In January 2023, the Company completed an investment of $ 5,500 in the common stock of Weev Energy B.F.

Ltd., ("Wevo"), a privately-held company, which represented 34.8 % of Wevo's outstanding shares.

The investment agreement included a call option to acquire Wevo's remaining outstanding shares.

The Company accounted for the common stock and the call option as a single hybrid instrument.

The Company accounted for its investment in Wevo using the equity method of accounting.

Under this method, the investment, which was initially recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the investee as they occur, rather than when dividends or other distributions are received.

The Company's share of net losses in the three months ended March 31, 2024 were $ 296 .

Ltd., ("Wevo"), an Israel-based software startup, specializing in EV charging optimization and management for sites with large quantities of EV chargers, which represented 34.8 % of Wevo's outstanding shares.

Wevo's solution will also be part of the SolarEdge ONE energy optimization system for the Commercial and Industrial ("C&I") segment, designed to offer SolarEdge customers a single energy optimization solution that orchestrates and integrates between on-site solar generation, battery storage and large-scale EV charging.

On April 1, 2024, the Company completed the acquisition of all remaining outstanding shares of Wevo for approximately $ 13,331 in cash.

Pursuant to ASC 805, "Business Combination", the Company accounted for the Wevo acquisition as a business combination using the acquisition method of accounting.

Identifiable assets and liabilities of Wevo, including identifiable intangible assets, were recorded based on their estimated fair values as of the date of the closing of the acquisition.

The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill.

The Company recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date.

Such preliminary valuation required estimates and assumptions including, but not limited to, estimating future cash flows and direct costs in addition to developing the appropriate discount rates and current market profit margins.

The Company’s management believes the fair values recognized for the assets acquired and the liabilities assumed were based on reasonable estimates and assumptions.

From the initial investment through to the purchase of all remaining shares, the Company's share of net losses were $ 646 .

The Company determined that the acquisition date fair value of the original investment on April 1, 2024 was $ 5,979 , resulting in a gain of $ 1,125 .

The following table summarizes the preliminary fair values estimation of assets acquired and liabilities assumed as of the date of the acquisition:

Weighted Average

Useful Life (In years)

Net liabilities assumed

Identified intangible assets:

Customer relationships

Acquisition costs were immaterial and are included in general and administrative expenses in the consolidated statements of income (loss).

Goodwill generated from this acquisition was primarily attributable to expected post-acquisition synergies from combining Wevo's platform with the Company's product offering to its commercial and industrial customers.

All of the Goodwill was assigned to the Solar segment (see Note 23 ).

Goodwill is not deductible for tax purposes.

The fair values of technology, customer relationships and trade name were derived by applying the multi-period excess earnings method, with-and-without method, and the relief-from-royalty method, respectively, all of which are under the income approach whose underlying inputs are considered Level 3.

The fair values assigned to assets acquired and liabilities assumed were based on management's estimates and assumptions.

The results of Wevo have been included in the Company's consolidated statements of income (loss) since its acquisition date and are not material.

Pro forma financial information has not been presented because the impact of the acquisition was not material to the Company's statement of income (loss).

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

INVESTMENTS IN PRIVATELY-HELD COMPANIES

In January 2024, the Company completed an investment of $ 6,075 in the preferred stock of Ivy Energy, Inc, ("Ivy"), a privately-held U.S.

The Company accounted for the Ivy investment as an equity investment that does not have readily determinable fair values.

As such, the Company’s non-marketable equity securities had a carrying value of $ 6,000 as of March 31, 2024.

As such, the Company’s non-marketable equity securities had a carrying value of $ 6,075 as of June 30, 2024.

As of March 2024, the Company completed an investment of $ 5,000 in the preferred stock of Stardust Solution, Inc, ("Stardust"), a privately-held U.S.

The Company accounted for the Stardust investment as an equity investment that does not have readily determinable fair values.

As such, the Company’s non-marketable equity securities had a carrying value of $ 5,000 as of March 31, 2024.

As such, the Company’s non-marketable equity securities had a carrying value of $ 5,000 as of June 30, 2024.

In April 2024, the Company completed an investment of approximately $ 17,000 in the preferred stock of Ampeers Energy GmbH ("Ampeers"), a privately-held German company, which represented 28.23 % of Ampeers' outstanding shares.

The Company accounted for its investment in Ampeers using the equity method of accounting.

The Company's share of net losses in the three and six months ended June 30, 2024 were $ 567 .

Investments in privately-held companies are included within other long-term assets in the condensed consolidated balance sheets.

As of March 31, 2024, the carrying value of investments in privately-held companies was $ 16,183 .

There were no impairment charges for the three months ended March 31, 2024 associated with this equity method investment.

As of June 30, 2024, the carrying value of investments in privately-held companies was $ 27,405 .

There were no impairment charges for the three and six months ended June 30, 2024 and 2023 associated with this equity method investment.

SOLAREDGE TECHNOLOGIES INC.

2 unchanged sentences

MARKETABLE SECURITIES

The following is a summary of available-for-sale marketable securities as of March 31, 2024:

Amortized cost

Gross unrealized gains

Gross unrealized losses

The following is a summary of available-for-sale marketable securities as of June 30, 2024:

unrealized gains

unrealized losses

Matures within one year:

8 unchanged sentences

The following is a summary of available-for-sale marketable securities as of December 31, 2023:

Amortized cost

Gross unrealized gains

Gross unrealized losses

unrealized gains

unrealized losses

Matures within one year:

8 unchanged sentences

Government securities

The Company did not sell any available-for-sale marketable securities during the three months ended March 31, 2024

Proceeds from sales of available-for-sale marketable securities during the three months ended March 31, 2023 were $ 2,807 , which led to realized losses of $ 125 .

As of March 31, 2024, and December 31, 2023, the Company did not record an allowance for credit losses for its available-for-sale marketable securities.

Proceeds from sales of available-for-sale marketable securities during the three months ended June 30, 2024 were $ 51,918 which led to realized gains of $ 1,970 .

Proceeds from sales of available-for-sale marketable securities during the six months ended June 30, 2024 and 2023 were $ 51,918 and $ 2,807 , which led to realized gains of $ 1,970 and losses of $ 125 , respectively.

The Company did not sell any available-for-sale marketable securities during the three months ended June 30, 2023.

As of June 30, 2024, and December 31, 2023, the Company did not record an allowance for credit losses for its available-for-sale marketable securities.

SOLAREDGE TECHNOLOGIES INC.

7 unchanged sentences

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Vendor non-trade receivables 1

Government authorities

Vendor non-trade receivables 1

Loan receivables 2

Interest from marketable securities

Prepaid expenses and other

Total prepaid expenses and other current assets

2 unchanged sentences

The Company does not reflect the sale of these components to the contract manufacturers in its revenues.

2 Loan receivables are loans to third parties.

2 L oan receivables are loans to third parties.

The loan repayments are expected on a monthly or annual basis as per the contractual terms of each loan agreement.

1 unchanged sentence

The loans bear interest that represent market interest rate.

As of March 31, 2024, the Company's provision for credit loss was $ 2,395 .

The amortized cost of the loan receivable approximates its fair value as of March 31, 2024.

As of June 30, 2024, the Company's provision for credit loss was $ 11,578 which was recorded under Financial income (expense), net.

The amortized cost of the loan receivable approximates its fair value as of June 30, 2024.

As of June 30, 2024 and December 31, 2023 the balance includes a loan granted to the Company’s customer at the amount of $ 80,000 and 43,000 , respectively.

Considering the loan amount the customer balance would potentially expose the Company to a concentration of credit risk.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

INTANGIBLE ASSETS, NET

Acquired intangible assets consisted of the following as of June 30, 2024, and December 31, 2023:

Intangible assets with finite lives:

Customer relationships

Assembled workforce

Patents and licenses

Gross intangible assets

Less - accumulated amortization

Total intangible assets, net

For the three months ended June 30, 2024 and 2023, the Company recorded amortization expenses related to intangible assets in the amount of $ 2,032 and $ 1,820 , respectively.

For the six months ended June 30, 2024 and 2023, the Company recorded amortization expenses related to intangible assets in the amount of $ 3,929 and $ 3,238 , respectively.

Expected future amortization expenses of intangible assets as of June 30, 2024 are as follows:

2029 and thereafter

Changes in the carrying amount of goodwill for the period ended June 30, 2024 were as follows:

Energy Storage

Goodwill at December 31, 2023

Changes during the year:

Foreign currency adjustments

Goodwill at June 30, 2024

As of June 30, 2024 and December 31, 2023 there were $ 90,104 accumulated goodwill impairment losses.

OTHER LONG TERM ASSETS

2 unchanged sentences

Investments in privately held companies

Loan receivables

Prepaid expenses and other

4 unchanged sentences

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

During the three months ended March 31, 2024, the Company instituted a foreign currency cash flow hedging program to reduce the risk of a forecasted increase in the value of foreign currency cash flows, resulting from payment of salaries in Israeli currency, the New Israeli Shekels (“NIS”).

During the six months ended June 30, 2024, the Company instituted a foreign currency cash flow hedging program to reduce the risk of a forecasted increase in the value of foreign currency cash flows, resulting from payment of salaries in Israeli currency, the New Israeli Shekels (“NIS”).

The Company hedges portions of the anticipated payroll denominated in NIS for a period of one to nine months with hedging contracts.

These hedging contracts are designated as cash flow hedges, as defined by ASC 815 and are all effective hedges.

As of March 31, 2024, the Company entered into put and call options to sell U.S.

As of June 30, 2024, the Company entered into put and call options to sell U.S.

dollars (“USD”) for NIS in the amount of NIS 115 million.

1 unchanged sentence

These derivative instruments are not designated as cash flow hedges, as defined by ASC 815, and therefore all gains and losses, resulting from fair value remeasurement, were recorded immediately in the statement of income (loss), under "Financial income (expense), net ".

As of March 31, 2024, the Company entered into a cross-currency swap contract to sell Euro (“EUR”) for USD in the amount of EUR 18 million.

The Company classifies cash flows related to its hedging as operating activities in its condensed consolidated statement of cash flows.

7 unchanged sentences

Total derivative assets

Derivative liabilities of options and forward contracts:

Designated cash flow hedges

Accrued expenses and other current liabilities

Gains (losses) on derivative instruments are summarized below:

Affected line item

Three Months Ended

Six Months Ended

Affected line item

Foreign exchange contracts

11 unchanged sentences

Marketable securities and foreign currency derivative contracts are classified within level 2 due to these assets being valued by alternative pricing sources and models utilizing market observable inputs.

The following table sets forth the Company’s assets that were measured at fair value as of March 31, 2024 and December 31, 2023, by level within the fair value hierarchy:

The following table sets forth the Company’s assets that were measured at fair value as of June 30, 2024 and December 31, 2023, by level within the fair value hierarchy:

Fair value measurements as of

Fair Value Hierarchy

June 30, 2024

December 31, 2023

Cash and cash equivalents:

11 unchanged sentences

Government securities

Derivative instruments

WARRANTY OBLIGATIONS

Changes in the Company’s product warranty obligations for the three months ended March 31, 2024 and 2023, were as follows:

Three Months Ended March 31,

Changes in the Company’s product warranty obligations for the three and six months ended June 30, 2024 and 2023, were as follows:

Three Months Ended

Six Months Ended

Balance, at the beginning of the period

11 unchanged sentences

Changes in the balances of deferred revenues and customer advances during the period are as follows:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Balance, at the beginning of the period

4 unchanged sentences

Long term portion

The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2024:

The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2024:

Total deferred revenues

4 unchanged sentences

Accrual for sales incentives

Finance lease liabilities

Total accrued expenses and other current liabilities

3 unchanged sentences

CONVERTIBLE SENIOR NOTES

On September 25, 2020, the Company sold $ 632,500 aggregate principal amount of its 0.00 % convertible senior notes due 2025 (the “Notes”).

On September 25, 2020, the Company sold an aggregate principal amount of $ 632,500 of its 0.00 % convertible senior notes, due 2025 (the “Notes 2025”).

The Notes 2025 were sold pursuant to an indenture, dated September 25, 2020 (the “Indenture”), between the Company and U.S.

9 unchanged sentences

Upon conversion, the Company may choose to pay or deliver, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock.

In addition, upon the occurrence of a fundamental change (as defined in the Indenture), holders of the Notes may require the Company to repurchase all or a portion of their Notes, in multiples of $1,000 principal amount, at a repurchase price of 100% of the principal amount of the Notes, plus any accrued and unpaid special interest to, but excluding the fundamental change repurchase date.

In addition, upon the occurrence of a fundamental change (as defined in the Indenture), holders of the Notes 2025 may require the Company to repurchase all or a portion of their Notes 2025, in multiples of $ 1 principal amounts, at a repurchase price of 100% of the principal amount of the Notes 2025, plus any accrued and unpaid special interest to, but excluding the fundamental change repurchase date.

If certain fundamental changes referred to as make-whole fundamental changes occur, the conversion rate for the Notes 2025 may be increased.

The Convertible Senior Notes consisted of the following as of March 31, 2024 and December 31, 2023:

On June 28, 2024, the Company sold an aggregate principal amount of $ 300,000 of its 2.25 % convertible senior notes , due 2029 (the “ Notes 2029”).

The Notes 2029 were sold pursuant to an indenture, dated June 28, 2024 (the “Indenture 2029”), between the Company and U.S.

Bank National Association, as trustee.

The Notes 2029 will bear interest at a rate of 2.25% per year, payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2025.

The Notes 2029 mature on July 1, 2029 , unless repurchased, redeemed or converted in accordance with their terms prior to such date.

The Notes 2029 are general senior unsecured obligations of the Company.

Holders may convert their Notes 2029 at any time prior to the close of business on the business day immediately preceding April 1, 2029 in multiples of $ 1 principal amount, only under the following circumstances:

(1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2024 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

(2) during the five business day period after any five consecutive trading day period in which the trading price per $1 principal amount of the Notes 2029 for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day;

or (3) upon the occurrence of specified corporate events or if the Company provides a notice of redemption as described in the Indenture 2029 .

In addition, holders may convert their Notes 2029, in multiples of $1 principal amount, at their option at any time beginning on or after April 1, 2029, and prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Notes 2029, without regard to the foregoing circumstances.

The initial conversion rate for the Notes 2029 is 29.1375 shares of common stock per $ 1 principal amount of Notes 2029, which is equivalent to an initial conversion price of approximately $ 34.32 per share of common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture 2029.

Upon conversion, the Company may choose to pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock.

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

In addition, upon the occurrence of a fundamental change (as defined in the Indenture 2029), holders of the Notes 2029 may require the Company to repurchase all or a portion of their Notes 2029, in multiples of $ 1 principal amounts, at a repurchase price of 100% of the principal amount of the Notes 2029, plus any accrued and unpaid interest, if any, to, but not including, the repurchase date.

If certain fundamental changes referred to as make-whole fundamental changes occur, the conversion rate for the Notes 2029 may be increased.

The Notes 2029 are not redeemable prior to July 6, 2027.

On or after July 6, 2027, the Company may redeem the Notes 2029 at its option if the last reported sale price of the common stock has been at least 130% of the conversion price, then in effect, for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including the trading day immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

The net proceeds from the offering of the Notes were approximately $ 293.2 million, after deducting fees and estimated expenses.

Separately, the Company has entered into capped call transactions (as detailed below).

The Company used approximately $ 25.2 million of the net proceeds from this offering to pay the cost of the capped call transactions.

The Company also used approximately $ 267.9 million of the net proceeds from this offering to repurchase $ 285 .0 million principal amount of its Notes 2025.

The Company recorded under other income a gain of 15,456 from the repurchase of Notes 2025.

The Company accounts for the Notes 2029 at amortized cost, as a single unit of account on the balance sheet.

The carrying value of the liability is represented by the face amount of the Notes 2029, less debt issuance costs, adjusted for any amortization of issuance costs.

Issuance costs are being amortized as interest expense over the term of the Notes 2029, using the effective interest rate method.

The capped call transactions are expected generally to reduce the potential dilution to the common stock upon any conversion of the Notes 2029 and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Notes 2029, as the case may be, in the event that the market price per share of common stock, as measured under the terms of the capped call transactions, is greater than the strike price of the capped call transactions.

The strike price initially corresponds to the conversion price of the Notes and is subject to customary anti-dilution adjustments.

If, however, the market price per share of common stock exceeds $48.84, the initial cap price of the capped call transactions, there would nevertheless be unmitigated dilution and/or no offset of any cash payments, in each case, attributable to the amount by which the market price of the common stock exceeds the cap price.

The cap price is subject to certain customary adjustments under the terms of the capped call transactions.

The capped call transactions are considered a freestanding instrument as they were entered into separately and apart from Notes 2029.

In addition, the conversion or redemption of the Notes 2029 would not automatically result in the exercise of the capped call.

As the capped call transactions are indexed to the Company's common stock, they were recorded as a reduction of additional paid-in capital in the condensed consolidated balance sheets.

The convertible senior notes consisted of the following as of June 30, 2024 and December 31, 2023:

Unamortized issuance costs

Net carrying amount

For the three months ended March 31, 2024 and 2023 the Company recorded amortized debt issuance costs related to the Notes in the amount of $ 735 and $ 731 , respectively.

As of March 31, 2024, the unamortized issuance costs of the Notes will be amortized over the remaining term of approximately 1.5 years.

The annual effective interest rate of the Notes is 0.47 %.

As of March 31, 2024, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $ 577,428 .

Net carrying amount Notes 2025

Unamortized issuance costs

Net carrying amount Notes 2029

Total notes carrying amount

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

Costs relates to the Notes for the three and six months ended June 30, 2024 were as fol lows:

Three Months Ended

Six Months Ended

Debt issuance cost

Contractual interest expense

As of June 30, 2024, the unamortized issuance costs of the Notes 2025 and Notes 2029 will be amortized over the remaining term of approximately 1.2 and 5 years, respectively.

The annual effective interest rate of Notes 2025 and Notes 2029 is 0.47 %.

and 2.62 %, respectively.

As of June 30, 2024, the estimated fair value of Notes 2025 and Notes 2029, which the Company has classified as Level 2 financial instruments, is $ 316,746 and $ 287,880 , respectively.

The estimated fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period.

As of March 31, 2024, the if-converted value of the Notes did not exceed the principal amount.

As of June 30, 2024, the if-converted value of the Notes 2025 and Notes 2029 did not exceed the principal amount.

SOLAREDGE TECHNOLOGIES INC.

10 unchanged sentences

The 2015 Plan provides for the grant of options, restricted stock units ("RSU"), performance stock units ("PSU"), and other share-based awards to directors, employees, officers, and non-employees of the Company and its subsidiaries.

As of March 31, 2024, a total of 23,709,926 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”), an aggregate of 13,676,076 shares are still available for future grants.

As of June 30, 2024, a total of 23,709,926 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”), an aggregate of 12,570,551 shares are still available for future grants.

The Share Reserve will automatically increase on January 1 st of each year during the term of the 2015 Plan, commencing on January 1 st of the year following the year in which the 2015 Plan becomes effective, in an amount equal to 5 % of the total number of shares of capital stock outstanding on December 31 st of the preceding calendar year;

5 unchanged sentences

The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is 10,000,000 .

As of March 31, 2024, an aggregate of 8,617,974 options are still available for future grants under the 2015 Plan.

As of June 30, 2024, an aggregate of 8,617,974 options are still available for future grants under the 2015 Plan.

SOLAREDGE TECHNOLOGIES INC.

2 unchanged sentences

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

exercise price

average remaining contractual term in years

Aggregate intrinsic Value

Outstanding as of December 31, 2023

Outstanding as of March 31, 2024

Vested and expected to vest as of March 31, 2024

Exercisable as of March 31, 2024

The intrinsic value is the amount by which the closing price of the Company’s common stock on March 31, 2024 of $ 70.98 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.

Outstanding as of June 30, 2024

Vested and expected to vest as of June 30, 2024

Exercisable as of June 30, 2024

The intrinsic value is the amount by which the closing price of the Company’s common stock on June 30, 2024 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 related information is as follows:

2 unchanged sentences

Unvested as of December 31, 2023

Unvested as of March 31, 2024

Unvested as of June 30, 2024

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

2 unchanged sentences

Unvested as of December 31, 2023

Unvested as of March 31, 2024

Unvested as of June 30, 2024

Employee Stock Purchase Plan ("ESPP"):

The Company adopted an ESPP effective upon the consummation of the IPO.

As of March 31, 2024, a total of 4,638,023 shares were reserved for issuance under this plan.

As of June 30, 2024, a total of 4,638,023 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 1 st 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.

3 unchanged sentences

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, 2024, 1,183,310 shares of common stock have been purchased under the ESPP.

As of June 30, 2024, 3,454,713 shares of common stock 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.

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

As of March 31, 2024, 938,164 shares of common stock have been purchased under the ESPP.

As of March 31, 2024, 3,699,859 shares of common stock 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.

Stock-based compensation expenses:

The Company recognized stock-based compensation expenses related to all stock-based awards in the condensed consolidated statement of income (loss) for the three months ended March 31, 2024, and 2023, as follows:

The Company recognized stock-based compensation expenses related to all stock-based awards in the consolidated statement of income (loss) for the three and six months ended June 30, 2024, and 2023, as follows:

Three Months Ended

Six Months Ended

Stock-based compensation expenses:

7 unchanged sentences

Total stock-based compensation capitalized

The total tax benefit associated with share-based compensation for the three months ended March 31, 2024 and 2023 was $ 5,366 and $ 4,197 , respectively.

The tax benefit realized from share-based compensation for three months ended March 31, 2024 and 2023 was $ 1,341 and $ 2,842 , respectively.

As of March 31, 2024, there were total unrecognized compensation expenses in the amount of $ 298,976 related to non-vested equity-based compensation arrangements granted.

These expenses are expected to be recognized during the period from April 1, 2024 through February 29, 2028

The total tax benefit associated with stock-based compensation for the three months ended June 30, 2024 and 2023 was $ 4,744 and $ 4,102 , respectively.

The tax benefit realized from stock-based compensation for the three months ended June 30, 2024, and 2023 was $ 1,283 and $ 2,619 , respectively.

The total tax benefit associated with stock-based compensation for the six months ended June 30, 2024, and 2023 was $ 10,110 and $ 8,298 , respectively.

The tax benefit realized from stock-based compensation for the six months ended June 30, 2024, and 2023 was $ 2,624 and $ 5,461 , respectively.

As of June 30, 2024, there were total unrecognized compensation expenses in the amount of $ 314,604 related to non-vested equity-based compensation arrangements granted.

These expenses are expected to be recognized during the period from July 1, 2024, through May 31, 2028.

Repurchase of Common Stock:

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The program does not obligate the Company to acquire any amount of common stock, it may be suspended, extended, modified, discontinued or terminated at any time at the Company’s discretion without prior notice, and will expire on December 31, 2024.

During the three months ended March 31, 2024, the Company repurchased 505,896 shares of common stock from the open market at an average cost of $ 65.67 per share for a total of $ 33,222 .

During the six months ended June 30, 2024, the Company repurchased 753,364 shares of common stock from the open market at an average cost of $ 66.79 per share for a total of $ 50,315 .

SOLAREDGE TECHNOLOGIES INC.

2 unchanged sentences

COMMITMENTS AND CONTINGENT LIABILITIES

As of March 31, 2024, contingent liabilities exist regarding guarantees in the amounts of $ 6,002 , and $ 1,841 in respect of office rent lease agreements and other transactions, respectively.

As of June 30, 2024, contingent liabilities exist regarding guarantees in the amounts of $ 10,526 , and $ 1,954 in respect of office rent lease agreements and other transactions, respectively.

Contractual purchase obligations:

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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 March 31, 2024, the Company had non-cancellable purchase obligations totaling approximately $ 484,287 , out of which the Company recorded a provision for loss in the amount of $ 23,259 .

As of March 31, 2024, the Company had contractual obligations for capital expenditures totaling approximately $ 32,967 .

As of June 30, 2024, the Company had non-cancellable purchase obligations totaling approximately $ 404,149 , out of which the Company recorded a provision for loss in the amount of $ 23,358 .

As of June 30, 2024, the Company had contractual obligations for capital expenditures totaling approximately $ 23,875 .

These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s general manufacturing process and are primarily for its new manufacturing sites in the U.S.

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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.

O n March 15, 2024, Abdul Hirani (“Hirani”) filed a purported derivative complaint in the United States District Court for the Southern District of New York against certain current and former Company executive officers and board members, including Zvi Lando, Ronen Faier, Nadav Zafrir, Betsy Atkins, Marcel Gani, Dana Gross, Dirk Hoke, Avery More, and Tal Payne (collectively, “Defendants”).

The Hirani complaint makes largely the same allegations as those in the Consolidated Securities Litigation described below, namely, that the Company failed to disclose information about its inventory in Europe and cancellation rates from European distributors, which allegedly resulted in material misstatements about the Company’s business and prospects in its quarterly filings.

On June 10, 2024, Jonathan Blaufarb (“Blaufarb”) filed a second purported derivative complaint in the United States District Court for the Southern District of New York against the same Defendants as those named in the Hirani Complaint.

The Blaufarb complaints makes largely the same allegations as well.

It also pleads the same counts as those in the Hirani complaint, as well as additional counts for abuse of control and gross mismanagement.

Defendants accepted service of the Hirani and Blaufarb complaints via stipulation that was so-ordered on July 12, 2024, and the two cases were consolidated with the Hirani matter designated as the lead case.

The parties have until September 10, 2024 to file a proposed case schedule.

On November 3, 2023, Daphne Shen, a purported stockholder of the Company, filed a proposed class action complaint for violation of federal securities laws, individually and punitively on behalf of all others similarly situated, in the U.S.

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On December 13, 2023, Javier Cascallar filed a similar proposed class action.

On February 7, 2024, the Court consolidated the two actions, and appointed co-lead plaintiffs and lead counsel.

On February 7, 2024, the Court consolidated the two actions (the "Consolidated Securities Litigation"), and appointed co-lead plaintiffs (the "Plaintiffs") and lead counsel.

On April 22, 2024, the co-lead Plaintiffs filed an amended complaint adding two additional officers.

The amended complaint makes substantially similar allegations and claims.

Defendants moved to dismiss the amended complaint on July 15, 2024 (the “Motion”).

The Plaintiffs have until August 26, 2024 to file their opposition to the Motion, and defendants will have three weeks thereafter to file a reply brief in support of their Motion.

Due to the early stage of this proceeding, the Company cannot reasonably estimate the potential range of loss, if any, or the likelihood of a potential adverse outcome.

4 unchanged sentences

0.44 euros per share) for a total payment of approximately $ 1,700 , which consists, in addition to the shareholders' compensation, legal expenses, court fees, VAT, and CPA expenses per local law.

The Company is currently evaluating whether to appeal this decision.

As of March 31, 2024, the Company recorded an accrual of $ 2,229 for legal claims which was recorded under accrued expenses and other current liabilities.

The Company filed an appeal to this decision on May 30, 2024 in the Court of Appeals of Milan, First Civil Chamber.

As of June 30, 2024, the Company recorded an accrual of $ 2,154 for legal claims which was recorded under accrued expenses and other current liabilities.

SOLAREDGE TECHNOLOGIES INC.

3 unchanged sentences

The following table summarizes the changes in accumulated balances of other comprehensive gain (loss), net of taxes:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Unrealized gains (losses) on available-for-sale marketable securities

4 unchanged sentences

Tax on reclassification

Losses reclassified from accumulated other comprehensive income

Losses (gains) reclassified from accumulated other comprehensive income (loss)

Net current period other comprehensive income

7 unchanged sentences

Losses (gains) reclassified from accumulated other comprehensive income (loss)

Net current period other comprehensive loss

Net current period other comprehensive income (loss)

Ending balance

8 unchanged sentences

(in thousands, except per share data)

The following table summarizes the reclassifications from "Accumulated other comprehensive loss" into the statement of income (loss):

The following table summarizes the reclassification out of "Accumulated other comprehensive loss ", net of taxes:

Details about Accumulated Other

1 unchanged sentence

Three Months Ended

Six Months Ended

Affected Line Item in the

Statement of Income

Available-for-sale marketable securities

Unrealized gains (losses) on available-for-sale marketable securities

Financial income (expense), net

Tax benefits (income taxes)

Total, net of tax benefits (income taxes)

Cash flow hedges

Total, net of income taxes

Unrealized gains (losses) on cash flow hedges, net

Cost of revenues

4 unchanged sentences

Tax benefits (income taxes)

Total, net of tax benefits (income taxes)

Total, net of income taxes

Total reclassifications for the period

OTHER OPERATING EXPENSE (INCOME)

The following table presents the expenses (income) recorded in the three ended March 31, 2024, and 2023:

Three Months Ended March 31,

The following table presents the expenses (income) recorded in the three and six months ended June 30, 2024, and 2023:

Three Months Ended

Six Months Ended

Impairment of property, plant and equipment

7 unchanged sentences

On January 21, 2024, the Company announced the adoption of a restructuring plan in response to challenging industry conditions (the “Restructuring Plan”).

Under the Restructuring Plan, the Company reduced its headcount by approximately 16% over the first half of 2024 through an involuntary workforce reduction plan.

Under the Restructuring Plan, the Company reduced its headcount by approximately 16% over the first half of 2024 in an involuntary workforce reduction.

The adoption of the Restructuring Plan follows the Company’s previous measures taken to align with current market conditions, including termination of manufacturing in Mexico, reduction of manufacturing capacity in China, and discontinuation of the Company’s light commercial vehicle e-mobility activity.

Restructuring and other exit charges for the three months ended March 31, 2024 by segment and type of cost were as follows:

Restructuring and other exit charges for the three months ended June 30, 2024 , by segment and type of cost were as follows:

termination costs

termination and

Inventory write-

termination and

Cost of revenues

Research and development

Sales and marketing

General and administrative

Restructuring and other exit charges for the six months ended June 30, 2024 , by segment and type of cost were as follows:

Employee termination costs

1 unchanged sentence

Employee termination costs

Inventory write-down

Contract termination and other

Cost of revenues

3 unchanged sentences

The Company’s liability balance for the restructuring and other exit charges is as follows:

Employee termination costs

Inventory write-down 1

Contract termination and other

termination costs

termination and

Balance as of December 31, 2023

1 unchanged sentence

Non-cash utilization and other

Balance as of March 31, 2024

Balance as of June 30, 2024

1 Inventory write-down is included under Inventories, net on the balance sheet.

The total amount expected to be incurred for restructuring and other exit charges, which primarily consists of contract terminations related to the Solar segment, is $ 5,497 .

SOLAREDGE TECHNOLOGIES INC.

1 unchanged sentence

(in thousands, except per share data)

For the three months ended March 31, 2024, the Company reported tax benefits and its effective tax rate was 13.1 %, compared to the three months ended March 31, 2023, where the Company reported income taxes and its effective tax rate was 17.5 %.

The change in effective tax rate in the three months ended March 31, 2024 compared to the corresponding period in 2023 is primarily attributable to the fact that the pre-tax loss for the quarter was in jurisdictions where the Company is either subject to a lower tax rate or where we do not anticipate a future tax benefit.

As of March 31, 2024, and December 31, 2023, unrecognized tax benefits were $ 18,496 and $ 15,908 , respectively.

For the three months ended June 30, 2024 , the Company reported tax benefits and an effective tax rate of 8.6 % , compared to the three months ended June 30, 2023 , where the Company reported income taxes and an effective tax rate of 22.3 % .

For the six months ended June 30, 2024 , the Company reported tax benefits and an effective tax rate of 11.1 % , compared to the six months ended June 30, 2023 , where the Company reported income taxes and an effective tax rate of 19.8 % .

The change in effective tax rate in the three and six months ended June 30, 2024 compared to the corresponding period in 2023 is primarily attributable to the fact that the pre-tax loss for the quarter was in jurisdictions where the Company is either subject to a lower tax rate or where we do not anticipate a future tax benefit.

As of June 30, 2024 , and December 31, 2023 , unrecognized tax benefits were valued at $ 20,152 and $ 15,908 , respectively.

If recognized, such benefits would favorably affect the Company’s effective tax rate.

The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes.

The total amount of penalties and interest as of March 31, 2024 and December 31, 2023 were $ 4,570 and $ 2,927 , respectively.

The total amount of penalties and interest as of June 30, 2024 and December 31, 2023 were $ 5,345 and $ 2,927 , respectively.

As of June 30, 2024 the deferred tax asset related to stock based compensation was $ 33,934 .

Given the decrease in the Company's stock price, it is possible that the actual value of the stock based awards will be less than the grant date fair value awards, resulting in a possible write-off of the deferred tax asset.

In August 2022, the U.S.

1 unchanged sentence

As part of such incentives, the IRA will, among other things, extend the investment tax credit (“ITC”) through 2034 and is therefore expected to increase the demand for solar products.

The IRA is expected to further incentivize residential and commercial solar customers and developers due to the inclusion of significant tax credits for qualifying energy projects, and Advanced Manufacturing tax credits ("AMPTC") for U.S.

manufacturing of eligible components (under IRC §45X), including PV inverters and DC-optimized systems.The Company has been manufacturing eligible products in the U.S.

manufacturing of eligible components (under IRC §45X), including PV inverters and DC-optimized systems.

The Company has been manufacturing eligible products in the U.S.

since the fourth quarter of 2023.

In the three months ended March 31, 2024, the Company manufactured and sold products that entitle it to $ 14,960 of AMPTCs, which were recorded as a reduction in of cost of revenues.

In the three months ended March 31, 2023, the Company did not record AMPTCs.

As of March 31, 2024 and December 31, 2023, benefits recognized from AMPTCs of $ 20,980 and $ 6,020 , respectively, were recorded as a tax prepayment within prepayment and other current assets.

In the three and six months ended June 30, 2024, the Company manufactured and sold products that entitle it to $ 15,161 and $ 30,121 of AMPTCs, respectively, which were recorded as a reduction in of cost of revenues.

As of June 30, 2024 and December 31, 2023 benefits from AMPTCs of $ 36,141 and $ 6,020 , respectively, were recorded as a tax prepayment within prepayment and other current assets.

The implementation of the new incentive rules is complex and further guidance by the U.S.

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The following table presents the computation of basic and diluted earnings (loss) per share (“EPS”):

Three Months Ended March 31,

Three Months Ended

Six Months Ended

Net income (loss)

7 unchanged sentences

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

Earnings per share:

Earnings (loss) per share:

The following outstanding shares of common stock equivalents were excluded from the calculation due to their antidilutive nature:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Stock-based awards

Notes due 2025

Total shares excluded

1 In conjunction with the issuance of the Notes 2029 in June 2024, the Company used approximately $ 25.2 million of the net proceeds from this offering to pay the cost of the capped call transactions.

In accordance with FASB ASC 260, antidilutive contracts, such as purchased put options and purchased call options are excluded from the computation of diluted net income (loss) per share.

Accordingly, any potential impact resulting from capped call transaction is excluded from our computation of diluted net income (loss) per share.

SOLAREDGE TECHNOLOGIES INC.

12 unchanged sentences

The Solar segment includes the design, development, manufacturing, and sales of an intelligent inverter solution designed to maximize power generation at the individual PV module level and batteries for PV applications.

The Solar segment solution consists mainly of the Company’s power optimizers, inverters, batteries, and cloud‑based monitoring platform.

The Energy Storage segment includes the design, development, manufacturing, and sales of high-energy, high-power, lithium-ion cells and racks and containerized battery systems for C&I and Utility markets.

The Solar segment solution consists mainly of the Company’s power optimizers, inverters, batteries, energy management solutions, and cloud‑based monitoring platform.

The Energy Storage segment provides purpose-built components and solutions, hardware and software, as well as pre and post sales engineering support to design, build, and manage battery and system solutions according to the customer’s use cases and mission profiles.

4 unchanged sentences

The following tables present information on reportable segments profit (loss) for the period presented:

Three Months Ended March 31, 2024

Energy Storage

Three Months Ended June 30, 2024

Cost of revenues

4 unchanged sentences

Segments profit (loss)

Three Months Ended March 31, 2023

Energy Storage

Three Months Ended June 30, 2023

Cost of revenues

4 unchanged sentences

Segments profit (loss)

Six Months Ended June 30, 2024

Cost of revenues

Gross profit (loss)

Research and development

Sales and marketing

General and administrative

Segments profit (loss)

Six Months Ended June 30, 2023

Cost of revenues

Gross profit (loss)

Research and development

Sales and marketing

General and administrative

Segments profit (loss)

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

The following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented:

Three Months Ended March 31,

Three Months Ended

Six Months Ended

Solar segment revenues

1 unchanged sentence

All other segment revenues

Revenues from financing component

Revenues from finance component

Consolidated revenues

SOLAREDGE TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except per share data)

The following table presents information on reportable segments reconciliation to consolidated operating income (loss) for the periods presented:

Three Months Ended March 31,

The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented:

Three Months Ended

Six Months Ended

Solar segment profit (loss)

10 unchanged sentences

Financial income (expense), net

Other loss, net

Other income (loss), net

Income (loss) before income taxes

SUBSEQUENT EVENTS

On April 1, 2024, the Company completed the acquisition of the remaining outstanding shares of Wevo for approximately $ 13,300 in cash.

Wevo is a software startup specializing in EV char ging optim ization and management for sites with large quantities of EV chargers such as apartment buildings, workplace car parks and public charging locations.

On April 10, 2024, the Company closed an agreement to acquire minority shares in Ampeers Energy GmbH ("Ampeers") from existing shareholders as well as through a share capital increase.

Ampeers, a German-based company, is involved in the programming, operation and marketing of an information and communications technology platform .

On May 7, 2024, the Israeli tax authorities issued tax orders for tax years 2017-2018 for the Company’s Israeli subsidiary, challenging the subsidiary's tax positions on several issues.

The Israeli subsidiary intends to protest the orders before the Central District Court in Israel.

The Company believes it has adequately provided for all exposures related to taxes payable by the group;

however, adverse results could have a material impact on the Company’s financial statements.

On July 8, 2024, the Company sold an aggregate principal amount of $ 37 million of the Company’s Notes 2029.

The Notes were sold pursuant to the Initial Purchasers’ exercise of the option granted by the Company to the Initial Purchasers to purchase additional Notes.

On July 15, 2024, the Company announced its adoption of additional measures in response to challenging industry conditions, including reducing its headcount by approximately 400 employees.

These decisions were made in order to better align the Company with current market conditions.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements