NOTE 4 – OPERATING LEASES

The Company is a party to a number of lease agreements for its facilities, the latest of which has been extended until the end of 2021. The Company has the option to extend certain of such agreements on two additional occasions for additional five-year periods each for a total of 10 additional years. During the extended lease period, the aggregate monthly rental payments will increase by 7.5% - 10% for each option. The Company expects to exercise these options in future periods. As of September 30, 2019, the Company provided bank guarantees of approximately $437,000 in the aggregate, to secure the fulfillment of its obligations under the lease agreements. As of December 31, 2018, the future minimum lease payments required under the operating leases for such premises are approximately $758,000, $758,000 and $621,000, for fiscal years 2019 through 2021, respectively.

The Company entered into several three-year leases for vehicles which are regularly amended as new vehicles are leased. As of December 31, 2018, the future minimum lease payments for the years ending December 31, 2019, 2020 and 2021 are approximately $474,000, $333,000 and $82,000, respectively.

The following table sets forth data regarding the Company’s operating leases for the nine and three months ended September 30, 2019:


	Nine Months Ended		Three Months Ended
(U.S. dollars in thousands)	September 30, 2019
Operating lease costs	$	907	$	314
Cash paid for amounts included in the measurement of lease liabilities		999		337
Right of use assets obtained in exchange for new operating lease liabilities		282		55

The following table sets forth data regarding the Company’s operating leases as of September 30, 2019:


	September 30, 2019
Weighted average remaining lease term (in years)	10.6
Weighted average discount rate	12.55	%

The following table sets forth a maturity analysis of the Company’s operating lease liabilities as of September 30, 2019:


(U.S. dollars in thousands)	September 30, 2019
2019 (excluding the nine months ended September 30, 2019)	$	300
2020	$	1,128
2021	$	949
2022	$	826
2023	$	803
After 2023	$	6,656
Total undiscounted cash flows	$	10,662
Less: imputed interest	$	4,908
Present value of operating lease liabilities	$	5,754