Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

LEASES

Note 6 — Leases

Operating Lease Agreements

The Company leases its headquarters office from an unrelated third party.. The lease was last renewed in 2016 and expires in September 2022. The Company's Israeli subsidiary entered into a two-year lease for office space starting in September 2018. Both leases include an option to extend with prior notice and with terms to be negotiated. The Company currently does not have any lease with a term under 12 months.

In March 2019, the Company's Israeli subsidiary signed a 10-year lease for a 5,800 square foot manufacturing facility. The landlord provided a rent-free grace period from April to July 2019, after which the 10-year lease term began. The initial monthly rental payment was approximately $5,300 and will be subject to periodic escalations at amounts specified in the lease plus the consumer price index. In addition, the Company is responsible for maintenance fees covering its portion of the expenses of common areas. After 2, 4, 6 and 8 years, and with 180 days' prior notice, the Company has the right to terminate the lease at its sole discretion without penalty.

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company's operating leases as of June 30, 2020.

Maturity of Operating Lease Liabilities	Amount
2020 (July 1 – December 31, 2020)	$	176,032
2021		348,122
2022		284,578
2023		104,343
2024		105,843
Thereafter		494,731
Total undiscounted operating leases payments	$	1,513,649
Less: Imputed interest		(246,714	)
Present Value of Operating Lease Liabilities	$	1,266,935
Other Information
Weighted-average remaining lease term		6.2 years
Weighted-average discount rate		5.0	%

An initial Right of Use (ROU) asset of approximately $805,000 was recognized as a non-cash assets addition with the adoption of the new lease accounting standard. The ROU asset was reduced by approximately $168,000 and $330,000 for the six months ended June 30, 2020 and the year ended December 31, 2019, respectively. Cash paid for amounts included in the present value of operating lease liabilities was approximately $183,000 and $310,000 for the six months ended June 30, 2020 and the year ended December 31, 2019, respectively, is included in operating cash flows. Operating lease cost was approximately $192,000 and $159,000 for the six months ended June 30, 2020 and 2019, respectively.