Note 3 - Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE 3: - COMMITMENTS AND CONTINGENT LIABILITIES

a. Liens:

The Company has several liens granted to financial institutions mainly to secure various operating lease agreements in connection with its office space.

b. Lease Commitments:

The Company rents its facilities in all locations under operating leases with lease periods expiring from

2017

-

2026.

The lease agreement of VSL includes extension options. VSL leases cars for its employees under operating lease agreements expiring at various dates from

2017

–

2020.

Aggregate minimum rental commitments under non-cancelable leases as of

March

31,

2017

for the upcoming years were as follows:

	(unaudited)
2017	$	3,828
2018		4,706
2019		4,764
2020		3,462
2021		3,472
Thereafter		13,041
	$	33,273

Total rent expenses for the

three

months ended

March

31,

2017

and the year ended

December

31,

2016

were

$883

and

$3,258,

respectively. The total minimum rent to be received in the future under the non-cancelable sublease as of

March

31,

2017

was

$1,315.

For leases that contain predetermined fixed escalations of the minimum rent, the Company recognizes the related rent expense on a straight-line basis from the date of possession of the property to the end of the initial lease term. The Company records any differences between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. Cash or lease incentives received upon entering into certain leases

(“tenant

allowances”) are recognized on a straight-line basis as a reduction to rent from the date of possession of the property through the end of the initial lease term. The Company records the unamortized portion of

tenant

allowances as a part of deferred rent, in current liabilities or other long-term liabilities, as appropriate.

c. Credit Facility:

On

March

 

31,

2014,

the Company entered into a promissory note and related security documents with Bank Leumi USA. The Company

may

borrow up to

$7,000

against certain of its accounts receivable outstanding amount, based on several conditions, at an annual interest rate of the Wall Street Journal Prime Rate less

0.15%.

As of

March

31,

2017,

that rate amounted to

3.85%.

This promissory note enables the Company, among other things, to engage in foreign currency hedging transactions with Bank Leumi USA to manage exposure to foreign currency risk without restricted cash requirements. The Company

may

borrow under the promissory note until

May

15,

2017

at which time the principal sum of each such loan, together with accrued and unpaid interest payable, will become due and payable. As of

March

31,

2017,

the Company had

no

balance outstanding under the promissory note. As part of the transaction, the Company granted the lender a security interest in its personal property, excluding intellectual property and other intangible assets. The promissory note also contains customary events of default

.