Note 7. Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Notes

Note 7. Commitments and Contingencies

Note 7. Commitments and Contingencies

The Company received research and development grants from the State of Israel according to guidelines and procedures of the Office of the Chief Scientist of the Ministry of Industry and Trade. According to the agreement, the Company is obligated to pay royalties on the sale of products developed with the participation of the Chief Scientist. The royalty rate is 3.5% and the total royalties will not exceed the amount of the grants. As of September 30, 2016 the Company had an outstanding contingent liability to pay royalties in the amount of approximately $186 thousands.