Lease Agreements

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Lease Agreements

NOTE 5 – 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. The company exercised the Option Period as estimated. In addition, the Company amended the agreement mentioned above which include a new option period for two additional years until December 31, 2024 under the terms stipulated in the agreement, the Option Period was taken in consideration when calculating the operating lease right of use assets and liabilities. In addition, the Company entered into another amendment to the lease agreement for a lease of additional space in the facility, the additional space amendment was taken in consideration when calculating the operating lease right of use assets and liabilities.
2)	The Company leases its motor vehicles under operating lease agreements.
3)	Operating lease cost for the year ended December 31, 2020 was comprised of the following:

	Twelve months ended December 31		Twelve months ended December 31
	2020		2019
	($ in thousands)		($ in thousands)
Operating lease expense		370		358
Short-term lease expense		-		8
		370		366

Supplemental information related to leases are as follows:

	December 31			December 31
	2020			2019
	($ in thousands)			($ in thousands)
Operating lease right-of-use assets		1,265			937
Current Operating lease liabilities		(400	)		(362	)
Non-current operating lease liabilities		(999	)		(653	)

Other information:

Operating cash flows from operating leases (cash paid in thousands)	(387	)	(366	)
Weighted Average Remaining Lease Term	1.73		1.33
Weighted Average Discount Rate	8.38	%	9.07	%

Maturities of lease liabilities are as follows:

	Amount
	($ in thousands)
2021		421
2022		389
2023		400
2024		419
Total lease payments		1,629
Less imputed interest		(230	)
Total		1,399