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NOTE 7 – LEASES:
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1) |
The Company has an operating lease agreement for its facility in the USA, which expires on March 31, 2024.
The Company is not reasonably certain that it will exercise the 5-year extension option and hence, the extension period was excluded from
the measurement of the ROU asset and the lease liability. The lease payments are denominated in USD. |
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2) |
On July 1, 2022, the Company entered into a new operating lease agreement for additional offices in the
USA, which expires on September 30, 2025. The lease payments are denominated in USD. |
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3) |
The Company’s Israeli subsidiary has an operating lease agreement for a facility in Israel, which
expires on April 30, 2023. The Company does not have an option for extending the lease agreement. The lease payments are denominated in
ILS and are indexed to the consumer price index. |
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4) |
On October 18, 2021, the Company entered into an agreement to sublease its facility to an unrelated third
party in the USA. The sublease ends March 31, 2024. The sublease is classified as an operating lease. The Company recognized lease income
during the three and nine months ended September 30,2022 in the amount of $40 and $121, respectively. |
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5) |
The Company leases its motor vehicles under operating lease agreements. |
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6) |
The Company adopted the new accounting standard ASC 842 “Leases” and all related amendments
on January 1, 2022 and used the adoption date as the Company’s date of initial application. |
Supplemental information related to
leases are as follows:
| |
|
September 30,
2022 |
|
| Operating leases: Operating lease right-of-use assets |
|
$ |
818 |
|
| Current Operating lease liabilities |
|
$ |
480 |
|
| Non-Current Operating lease liabilities |
|
$ |
276 |
|
| Total Operating lease liabilities |
|
$ |
756 |
|
Other information:
| |
|
Nine months ended
September 30,
2022 |
|
| Cash paid for amounts included in the measurement of lease liabilities (cash paid in thousands) |
|
$ |
520 |
|
| Weighted Average Remaining Lease Term |
|
|
1.55 |
|
| Weighted Average Discount Rate |
|
|
3.11 |
% |
The lease costs components are as follows:
| |
|
Nine months ended
September 30,
2022 |
|
|
Three months ended
September 30,
2022 |
|
| Operating lease cost |
|
$ |
504 |
|
|
$ |
168 |
|
| Variable payments that depend on an index or rate |
|
|
16 |
|
|
|
8 |
|
| Total lease cost |
|
$ |
520 |
|
|
$ |
178 |
|
Maturities of operating lease liabilities
were as follows:
| |
|
September 30,
2022 |
|
| 2022 (excluding the nine months ended September 30, 2022) |
|
$ |
150 |
|
| 2023 |
|
|
444 |
|
| 2024 |
|
|
153 |
|
| 2025 |
|
|
61 |
|
| Total operating lease payments |
|
|
808 |
|
| Less: imputed interest |
|
|
(52 |
) |
| Present value of lease liabilities |
|
$ |
756 |
|
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