Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
U.S. Dollars in thousands, except per share amounts

Three months ended

Nine months ended

Sept 30,

Sept 30,

2023

2022

2023

2022

Unaudited

Unaudited

Unaudited

Unaudited

GAAP net loss

$  (4,957)

$  (22,304)

$  (15,647)

$  (25,123)

Equity-based compensation expense included in cost of
revenues

216

187

636

511

Equity-based compensation expense included in research
and development expenses

2,257

2,105

6,703

5,988

Equity-based compensation expense included in sales
and marketing expenses

478

380

1,305

1,030

Equity-based compensation expense included in general
and administrative expenses

1,018

699

2,787

2,004

Amortization, Impairment and Write-off of intangible
assets

278

6,273

753

7,793

Costs associated with business acquisitions

100

-

195

-

Income (loss)  associated with the remeasurement of
marketable equity securities.

(160)

455

76

2,271

Income tax expense as a result of a write off of a
deferred tax asset and withholding tax that can't be utilized

-

15,741

-

15,323

Non-GAAP from discontinued operations

1,184

1,169

3,233

3,436

Non-GAAP net income

$414

$  4,705

$  41

$  13,233

GAAP weighted-average number of Common Stock
used in computation of diluted net loss and loss per share
(in thousands)

23,605

23,211

23,473

23,163

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

1,304

872

1,172

821

Weighted-average number of Common Stock used in
computation of diluted earnings per share, excluding the
above (in thousands)

24,909

24,083

24,645

23,984

GAAP diluted loss per share

$  (0.21)

$  (0.96)

$  (0.67)

$  (1.08)

Equity-based compensation expense

$  0.17

$  0.15

$  0.49

$  0.40

Amortization, Impairment and Write-off of intangible
assets, net of taxes

$  0.01

$  0.27

$  0.03

$  0.33

Costs associated with business acquisitions

-

-

$  0.01

-

Loss associated with the remeasurement of marketable
equity securities.

-

$  0.01

-

$  0.10

Income tax expense as a result of a write off of a
deferred tax asset and withholding tax that can't be
utilized

-

$  0.68

-

$  0.66

Non-GAAP from discontinued operations

$  0.05

$  0.05

$  0.14

$  0.14

Non-GAAP diluted earnings per share

$  0.02

$  0.20

$  0.00

$  0.55

Three months ended

Nine months ended

Sept 30,

Sept 30,

2023

2022

2023

2022

Unaudited

Unaudited

Unaudited

Unaudited

GAAP Operating Income (loss)

$  (2,717)

$  (2,359)

$  (10,680)

$  2,887

Equity-based compensation expense included in cost of
revenues

216

187

636

511

Equity-based compensation expense included in
research and development expenses

2,257

2,105

6,703

5,988

Equity-based compensation expense included in sales
and marketing expenses

478

380

1,305

1,030

Equity-based compensation expense included in
general and administrative expenses

1,018

699

2,787

2,004

Amortization, Impairment and Write-off of intangible
assets

278

6,273

753

7,793

Costs associated with business acquisitions

100

195

Total non-GAAP Operating Income

$  1,630

$  7,285

$  1,699

$  20,213

Three months ended

Nine months ended

Sept 30,

Sept 30,

2023

2022

2023

2022

Unaudited

Unaudited

Unaudited

Unaudited

GAAP Gross Profit

$  21,716

$  24,389

$  63,868

$  78,396

GAAP Gross Margin

90 %

81 %

87 %

87 %

Equity-based compensation expense included in cost of
revenues

216

187

636

511

Amortization, Impairment and Write-off of intangible
assets    

129

2,142

308

2,511

Total Non-GAAP Gross profit

22,061

26,718

64,812

81,418

Non-GAAP Gross Margin

92 %

89 %

88 %

90 %