NOTE 10 – LEASES

A.	Right-of-use assets

	Cost								Accumulated depreciation
	Balance at		Additions		Deletions		Balance at		Balance at		Additions		Deletions		Balance at		Net book value
	beginning		during		during		end of		beginning		during		during		end of		December 31,
	of year		year		year		year		of year		year		year		year		2022		2023
	in USD thousands								in USD thousands								in USD thousands
Composition in 2023
Property		2,097		-		-		2,097		582		388		-		970		1,515		1,127
Motor vehicles		336		149		117		368		79		118		117		80		257		288
		2,433		149		117		2,465		661		506		117		1,050		1,772		1,415

B.	Lease liabilities

	Balance at		Additions		Deletions		Interest expense		Exchange differences			Payments			Balance at
	beginning		during		during		during		during			during			end of
	of year		year		year		year		year			year			year
			in USD thousands
Composition in 2023
Property		1,920	-			-		236		(38	)		(562	)		1,556
Motor vehicles		236		149		-		37		(4	)		(156	)		262
		2,156		149		-		273		(42	)		(718	)		1,818

C.	Additional disclosures

1)	The Company leases two premises – its corporate headquarters and development facilities in Modi’in, Israel, and its U.S. commercial headquarters in Waltham, Massachusetts.

The Company leases its premises in Israel under a lease agreement entered into in August 2014. Payments under the lease commenced in June 2015, and the initial term of the lease expired in June 2020. The Company exercised its option to extend the lease through June 30, 2025, and has the option to extend the lease for two additional lease periods totaling up to five additional years, each option at a 5% increase to the preceding lease payment amount. The monthly lease payment is approximately $25,000. In addition, the Company pays building maintenance charges of approximately $8,000 per month.

b.	The Company leases its premises in Boston under a lease agreement entered into and commenced in October 2022. The term of the lease will expire in December 2024. The monthly lease fee is approximately $24,000.

The Company has entered into lease agreements in connection with a number of vehicles. The lease periods are generally for three years. The annual lease fees, linked to the CPI, are approximately $303,000. To secure the terms of the lease agreements, the Company has prepaid two months of lease payments to the leasing companies.

3)	As of December 31, 2023, minimum future rental payments (taking into consideration the aforementioned extension periods) under the leases are as follows:

Year	Property		Motor vehicles		Total
	in USD thousands
2024		575		161		736
2025		292		113		405
2026		292		26		317
2027		306		-		306
2028-2030		766		-		766
		2,231		300		2,531

Extension and termination options are included in most of the property leases. These are used to maximize operational flexibility in terms of managing the assets used in the Company’s operations. The substantial majority of extension and termination options are exercisable solely by the Company and not by the lessors.