OPERATING LEASES

3 Months Ended

Mar. 31, 2019

NOTE 4 –

OPERATING LEASES

The Company is a party to a number of lease agreements for its facilities, the latest of which has been extended until 2021. The Company has the option to extend certain of such agreements on two additional occasions for additional five-year periods each, for a total of 10 additional years. During the extended lease period, the aggregate monthly rental payments will increase by 7.5% - 10% for each option. The Company expects to exercise these options in future periods. As of March 31, 2019, the Company provided bank guarantees of approximately $412,000, in the aggregate, to secure the fulfillment of its obligations under the lease agreements. As of December 31, 2018, the future minimum lease payments required under the operating leases for such premises are approximately $758,000, $758,000 and $621,000, for fiscal years 2019 through 2021, respectively.

The Company entered into several three-year leases for vehicles which are regularly amended as new vehicles are leased. As of December 31, 2018, the future minimum lease payments for the years ending December 31, 2019, 2020 and 2021 are approximately $474,000, $333,000 and $82,000, respectively.

The following table sets forth data regarding the Company’s operating leases for the three months ended March 31, 2019:

( U.S. dollars in thousands)	March 31, 2019
Operating lease costs	$	292
Cash paid for amounts included in the measurement of lease liabilities		328
Right of use assets obtained in exchange for new operating lease liabilities		52
Weighted average remaining lease term (in years)		10.84
Weighted average discount rate		12.58	%

The following table sets forth a maturity analysis of the Company’s operating lease liabilities as of March 31, 2019:

( U.S. dollars in thousands)	March 31, 2019
2019 (excluding the three months ended March 31, 2019)	$	947
2020	$	1,135
2021	$	888
2022	$	774
2023	$	770
After 2024	$	6,380
Total undiscounted cash flows	$	10,894
Less: imputed interest	$	5,139
Present value of lease liabilities	$	5,755