OPERATING LEASES

12 Months Ended

Dec. 31, 2023

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 2026. The Company has the option to extend certain of such agreements on one additional occasion for an additional five-year period. During the extended lease period, the aggregate monthly rental payments will increase by 7.5%-10% for the option. The Company expects to exercise the final option in future periods. As of December 31, 2023, the Company provided bank guarantees of approximately $502,000, 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 years ended December 31, 2021, 2022 and 2023:

	Year ended December 31,
(U.S. dollars in thousands)	2021			2022			2023
Operating lease costs	$	1,632		$	1,398		$	1,471
Cash paid for amounts included in the measurement of lease liabilities		1,391			1,404			1,484
Weighted average remaining lease term (in years)		8.9			8.2			6.8
Weighted average discount rate		12.8	%		12.8	%		12.8	%

The following table sets forth a maturity analysis of the Company’s operating lease liabilities as of December 31, 2023:

(U.S. dollars in thousands)	December 31, 2023
2024	$	1,409
2025	$	1,397
2026	$	1,125
2027	$	1,044
2028 and thereafter	$	4,057
Total undiscounted cash flows	$	9,032
Less: imputed interest	$	3,002
Present value of operating lease liabilities	$	6,030