Right of Use Leases Assets and Leases Obligations

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Right of use leases assets and leases obligations

Note 7 - Right of use leases assets and leases obligations

The Company is a lessee in several non-cancelable operating leases, primarily for transportation and office spaces.

The table below presents the operating lease assets and liabilities recognized on the balance sheets as of June 30, 2019:

	June 30, 2019		December 31, 2018
	US$ thousands		US$ thousands
Operating lease assets	$	685	$	-
Operating lease liabilities:
Current operating lease liabilities	$	216	$	-
Non-current operating lease liabilities	$	516	$	-
Total operating lease liabilities	$	732	$	-

The depreciable lives of operating lease assets and leasehold improvements are limited by the expected lease term.

The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date.

The Company's weighted average remaining lease term and weighted average discount rate for operating leases as of June 30, 2019 are:

	June 30, 2019
Weighted average remaining lease term (years)		3.7
Weighted average discount rate		6.0	%

The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on the condensed balance sheets as of June 30, 2019:

	US$ thousands
July 1, 2019 through December 31, 2019		275
2020		261
2021		136
2022		136
2023		80
Thereafter		-
Total undiscounted future minimum lease payments		888
Less: portion representing imputed interest		(155	)
Total undiscounted future minimum lease payments		733

Operating lease costs were $64,000 and $132,000 for the three and six months ended June 30, 2019, respectively. Operating lease costs are included within general and administrative expenses on the statements of income.

Cash paid for amounts included in the measurement of operating lease liabilities were $68,000 and $139,000 for the three and six months ended June 30, 2019, and this amount is included in operating activities in the statements of cash flows. Right-of-use assets obtained in exchange for new operating lease liabilities were $819,000 for the six months ended June 30, 2019.