LEASE AGREEMENTS

9 Months Ended

Sep. 30, 2023

Lease Agreements

LEASE AGREEMENTS

NOTE 9 – LEASE AGREEMENTS

1)

The Company’s Israeli subsidiary has a lease agreement for a facility in Israel, which expires on December 31, 2026. On August 24, 2023, the Company amended the lease agreement mentioned above, leasing additional space in the facility and shortened the lease term of another space in the building. he balances of right of use assets and lease liabilities increased due to the newly leased space and decreased due to the lease that was shortened.

2)

Operating lease cost for the nine and three-month periods ended September 30, 2023 were $337,000 and $112,000 respectively

Supplemental information related to leases are as follows:

	September 30			December 31
	2023			2022
	($ in thousands)			($ in thousands)
Operating lease right-of-use assets		1,538			1,554
Current operating lease liabilities		(497	)		(419	)
Non-current operating lease liabilities		(1,062	)		(1,195	)
Weighted Average Remaining Lease Term		3.25			4
Weighted Average Discount Rate		9.73	%		8.69	%

Other information:

	Nine months ended September 30,			Twelve months ended December 31,
	2023			2022
Operating cash flows from operating leases (cash paid in thousands)		(307	)		(436	)

Maturities of lease liabilities are as follows:

	Amount
	($ in thousands)
2023		113
2024		536
2025		541
2026		606
Total lease payments		1,796
Less imputed interest		(237	)
Total		1,559