OPERATING LEASES

12 Months Ended

Dec. 31, 2020

OPERATING LEASES

OPERATING LEASES

NOTE 7 - OPERATING LEASES

The Company is a party to several 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 December 31, 2020, the Company provided bank guarantees of approximately $464,000, in the aggregate, to secure the fulfillment of its obligations under the lease agreements.

The Company entered into several three-year leases for vehicles which are regularly amended as new vehicles are leased.

The following table sets forth data regarding the Company’s operating leases for the year ended December 31, 2019 and 2020:

	December 31,
(U.S. dollars in thousands)	2019			2020
Operating lease costs	$	1,219		$	1,382
Cash paid for amounts included in the measurement of lease liabilities		1,329			1,289
Weighted average remaining lease term (in years)		10.5			9.5
Weighted average discount rate		12.7	%		12.7	%

The following table sets forth a maturity analysis of the Company’s operating lease liabilities as of December 31, 2020:

(U.S. dollars in thousands)	December 31, 2020
2021	$	1,233
2022	$	1,111
2023	$	927
2024	$	838
2025 and thereafter	$	6,222
Total undiscounted cash flows	$	10,331
Less: imputed interest	$	4,444
Present value of operating lease liabilities	$	5,887