Commitments and Contingent Liabilities

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

NOTE 9 - COMMITMENTS AND CONTINGENT LIABILITIES:

a. Lease Agreements

1)	The Company’s Israeli subsidiary has a lease agreement for a facility in Israel, which expires on December 31, 2020 with an option to extend the agreement for two additional years until December 31, 2022 under the terms stipulated in the agreement.
2)	The Company leases its motor vehicles under operating lease agreements.
3)	Operating lease cost for the nine months ended September 30, 2019 was comprised of the following:

	Nine months ended September 30
	2019
	($ in thousands)
Operating lease expense		267
Short-term lease expense		6
Variable lease expense		-
		273

Supplemental information related to leases are as follows:

	September 30
	2019
	($ in thousands)
Operating lease right-of-use assets		975
Current Operating lease liabilities		(352	)
Non-current operating lease liabilities		(699	)

Other information:

Operating cash flows from operating leases (cash paid in thousands)	(270	)
Weighted Average Remaining Lease Term	1.44
Weighted Average Discount Rate	9.07	%

Maturities of lease liabilities are as follows:

	Amount
	($ in thousands)
2019 (excluding the nine months ended September 30, 2019)		93
2020		372
2021		375
2022		349
Total lease payments		1,189
Less imputed interest		(138	)
Total		1,051

4) ASC 840 Disclosures

The Company elected the modified retrospective transition method and included the following tables previously disclosed.

Future contractual obligations under the abovementioned operating lease agreements (not including the extension option) as of December 31, 2018 are as follows:

	Amount
	U.S. dollars in thousands
2019		337
2020		357
2021		26
Total		720

b. Litigation:

In July 2019, a former distributor filed a suit seeking damages from the Company’s subsidiary for pre-paid goods subject to the voluntary field action (from April 2014) amounting to €1,830,000 (which is approximately $2.0 million), or alternatively €1,024,000 (which is approximately $1.1 million). After considering the views of its legal counsel as well as other factors, the Company’s management believes that there is a reasonably possible likelihood of a loss from any related future proceedings would range from a minimal amount up to €1,830,000.

In July 2016, a service provider filed a suit seeking damages from the Company’s subsidiary amounting to $1,967,822. The Company’s subsidiary and the plaintiff have entered into a confidential settlement agreement in the amount of $600,000, and on April 24, 2019, the parties filed a stipulation of dismissal, dismissing all claims in this action. On April 25, 2019, the court denied as moot all pending motions. The related increase in provision of $354,000 was recorded to “Research and development expense” within the Consolidated Statements of Operations for the nine months ended September 30, 2019.