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

Three months ended

Twelve months ended

December 31,

December 31,

2023

2022

2023

2022

Unaudited

Unaudited

Unaudited

Unaudited

GAAP net income (loss)

$  3,769

$  1,940

$  (11,878)

$  (23,183)

Equity-based compensation expense included in cost of revenues

190

176

826

687

Equity-based compensation expense included in research and
development expenses

2,430

2,271

9,133

8,259

Equity-based compensation expense included in sales and
marketing expenses

471

473

1,776

1,503

Equity-based compensation expense included in general and
administrative expenses

1,008

884

3,795

2,888

Amortization, Impairment and Write-off of intangible assets

278

370

1,031

8,163

Costs associated with business acquisitions

356

-

551

-

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

(74)

240

2

2,511

Impairment cost associated with close of an office

-

318

-

318

Retirement expenses of executives

-

1,271

-

1,271

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

-

-

-

15,323

Income tax expenses, an impact as a result of the completion of a
tax audit for prior years

1,302

-

1,302

-

Adjustment related to US tax reform rule 174

4,460

(3,484)

4,460

(3,484)

Non-GAAP from discontinued operation

(11,812)

1,143

(8,579)

4,579

Non-GAAP net income

$2,378

$  5,602

$  2,419

$  18,835

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

23,518

23,406

23,484

23,172

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

1,271

684

1,197

839

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

24,789

24,090

24,681

24,011

GAAP diluted income (loss) per share

$  0.16

$  0.08

$  (0.51)

$  (1.00)

Equity-based compensation expense

$  0.17

$  0.16

$  0.66

$  0.57

Amortization, Impairment and Write-off of intangible assets

$  0.01

$  0.02

$  0.04

$  0.35

Impairment cost associated with close of an office

-

$  0.01

-

$  0.01

Costs associated with business acquisitions

$  0.02

-

$  0.02

-

Income associated with the remeasurement of marketable equity
securities

-

$  0.01

-

$  0.09

Retirement of executives

-

$  0.05

-

$  0.05

Adjustment related to income tax expenses

$  0.24

($  0.15)

$  0.25

$  0.51

Non-GAAP from discontinued operation

($  0.50)

$  0.05

($  0.36)

$  0.20

Non-GAAP diluted earnings per share

$  0.10

$  0.23

$  0.10

$  0.78

Three months ended

Twelve months ended

December 31,

December 31,

2023

2022

2023

2022

Unaudited

Unaudited

Unaudited

Unaudited

GAAP Operating Income (loss)

$  (2,787)

$  1,009

$  (13,467)

$  3,896

Equity-based compensation expense included in cost of
revenues

190

176

826

687

Equity-based compensation expense included in
research and development expenses

2,430

2,271

9,133

8,259

Equity-based compensation expense included in sales
and marketing expenses

471

473

1,776

1,503

Equity-based compensation expense included in
general and administrative expenses

1,008

884

3,795

2,888

Amortization, Impairment and Write-off of intangible
assets

278

370

1,031

8,163

Costs associated with the Business acquisition

356

-

551

-

Retirement of executives

-

1,271

-

1,271

Impairment cost associated with close of an office

-

318

-

318

Total non-GAAP Operating Income

$  1,946

$  6,772

$  3,645

$  26,985

Three months ended

Twelve months ended

December 31,

December 31,

2023

2022

2023

2022

Unaudited

Unaudited

Unaudited

Unaudited

GAAP Gross Profit

$  21,903

$  27,056

$  85,771

$  105,452

GAAP Gross Margin

91 %

89 %

88 %

87 %

Equity-based compensation expense included in cost of
revenues

190

176

826

687

Amortization, Impairment and Write-off of intangible
assets    

129

71

437

2,582

Total Non-GAAP Gross profit

22,222

27,303

87,034

108,721

Non-GAAP Gross Margin

92 %

90 %

89 %

90 %