Annual report pursuant to Section 13 and 15(d)

COMMITMENTS AND CONTINGENT LIABILITIES

v3.19.1
COMMITMENTS AND CONTINGENT LIABILITIES
12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 8:- COMMITMENTS AND CONTINGENT LIABILITIES

 

  a. The Company leases office facilities and motor vehicles under operating leases, which expire on various dates, the latest of which is 2020.

 

Year ended December 31,    Operating leases  
       
2019   $ 43  
2020   $ 29  
Total   $ 72  

 

The Company leases motor vehicles under cancelable lease agreements. The Company has an option to be released from this lease agreement, which may result in penalties in a maximum amount of approximately $5.

 

Rent and related expenses were $31 and $27 for the years ended December 31, 2018 and 2017, respectively.

 

Motor vehicle leases, and related expenses were $42 and $15 for the years ended December 31, 2018 and 2017, respectively.

 

  b. Royalties to the Israel Innovation Authority (“the IIA”):

 

Under the Company’s subsidiary research and development agreements with the IIA and pursuant to applicable laws, the Company is required to pay royalties at the rate of 3-3.5% of sales of products developed with funds provided by the IIA, up to an amount equal to 100% of the IIA research and development grants received, linked to the dollar including accrued interest at the LIBOR rate. The Company has received through the years grants in the amount of $ 437. The Company is obligated to repay the Israeli Government for the grants received only to the extent that there are sales of the funded products. As of December 31, 2018, there are no sales from the funded projects.

 

As of December 31, 2018, the Company has a contingent obligation to pay royalties in the principal amount of approximately $ 470. In addition, the IIA may impose certain conditions on any arrangement under which it permits the Company to transfer technology or development out of Israel.