Actelis Networks, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies [Abstract]

NOTE 8 – COMMITMENTS AND CONTINGENCIES:

As of December 31, 2021, the Company was obligated under noncancellable operating lease agreements for certain sales offices and vehicles.

Future minimum lease payments for noncancellable operating leases with initial or remaining terms in excess of one year are as follows:

Fiscal year ending December 31:

	2022			573
	2023			294
	2024			42
	Total minimum lease payments			909

The lease fees expensed in each of the three months ended March 31, 2022 and for the year ended December 31, 2021, were $156 and $516 respectively

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 based on LIBOR. The Company may be required to pay royalties based on previous years funding in periods after March 31, 2022, 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, 2022, the Company received approximately $14,300 (approximately $15,500 including LIBOR) and repaid approximately $10,000.

As of March 31, 2022, and December 31, 2021, the Company had a liability to pay royalties in the amount of approximately $877 and $818, respectively.