Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Operating Leases

Operating Leases
12 Months Ended
Dec. 31, 2019
Operating Leases  




On November 15, 2018, the Company signed a new lease agreement for the Company's new offices located in Rehovot which expires in April 2024, for a monthly payment of NIS 89 thousand, (approximately $25 thousand), with an option to extend for five additional years. In addition, as part of the lease agreement the Company did not carry the monthly rent payment during the first five months of the lease agreement and was reimbursed for its building adjustments costs in the amount of $689.


As collateral for the lease agreement, a restricted deposit was pledged in favor of the property owner. The balance of the restricted deposit as of December 31, 2019 amounted to $168. The deposit is classified as a non-current asset.


On July 28, 2016, the Company signed a lease agreement for additional space designated for its development and production activities. The lease was for three years with an option to extend for four additional years, in return for a monthly payment of NIS 30 thousand (approximately $8.5). On March 24, 2019, the Company exercised its first option to extend the lease period for an additional 16 months commencing July 1, 2019.


In July 2017, the Company signed a lease agreement for land in Yessod Hamaala that was previously leased. The new lease agreement is for four years, commencing May 1, 2017, with an option to extend for an additional six years, with a monthly rental amount of NIS 10 thousand (approximately $3).


The Company also leased a space for its old offices in Ness Ziona until March 31, 2019, for a monthly rental amount of approximately $15.


2) The Company has entered into operating lease agreements for vehicles used by its employees. The lease periods are generally for three years and the payments are linked to the Israeli CPI. To secure the terms of the lease agreements, the Company has made certain prepayments to the leasing company, representing approximately three months of lease payments.


Operating leases cost for rental space and vehicles for the year ended December 31, 2019 totaled $619.


Rent expense for the years ended December 31, 2017 and 2018 was approximately $296 thousand and $331 thousand, respectively.


The operating lease costs include variable lease payments of $9.


Supplemental cash flow information related to leases was as follows:


    Year ended December 31,  
Operating cash flows from operating leases   $ 505  


Supplemental balance sheet information related to leases was as follows:


    December 31,  
Operating Leases      
Operating lease right-of-use assets   $ 3,215  
Current lease liabilities   $ 455  
Non-current lease liabilities     3,139  
Total lease liabilities   $ 3,594  
Weighted Average Remaining Lease Term        
Operating leases     8.4 years  
Weighted Average Discount Rate        
Operating leases     7.3 %


As of December 31, 2019, the maturities of lease liabilities were as follows:


    Operating leases  
Year ending December 31,        
2020   671  
2021     603  
2022     579  
2023     528  
2024 and thereafter     2,294  
Total lease payments     4,675  
Less - imputed interests     (1,081 )
Total     3,594  


As of December 31, 2018, the minimum lease payments of the Company were as follows:


Year ending December 31,      
2019     537  
2020     578  
2021     524  
2022     514  
2023     496