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NOTE
6 – COMMITMENTS AND CONTINGENCIES:
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a. |
The Company is obligated to repay certain research and development grants received from the Government of Israel in the form of a royalty rate on future sales of products derived from the funded research and development activities. The aggregate amount of royalties to be paid is determined based on 100% of the total grants received for qualified projects plus interest. The Company may be required to pay royalties based on previous years funding in periods after March 31, 2024, for the future sale of product that includes technology developed and funded with these research and development grants received to date. |
As
of March 31, 2024, the Company had received approximately $14,300 (approximately $15,775 including interest) and repaid approximately
$10,275 in such grants.
As
of March 31, 2024, and December 31, 2023, the Company had a liability to pay royalties in the amount of approximately $1,087 and $1,062,
respectively.
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b. |
In March 2024, the Company received an advance payment of $1,143 from a reseller for a contract with a US based government agency. The order is expected to be supplied during the second and third quarters of 2024. |
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