COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 13 – COMMITMENTS AND CONTINGENCIES

Profit Sharing Plan

We maintain a contributory profit-sharing plan covering substantially all fulltime employees within the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). In 2016, the Safe Harbor element was removed from the plan and the employer may make a discretionary matching contribution equal to a uniform percentage or dollar amount of participants’ elective deferrals for each Plan Year. In 2015, we were required to make a safe harbor non-elective contribution equal to 3 percent of a participant’s compensation. The plan also includes a 401(k) savings plan feature that allows substantially all employees to make voluntary contributions and provides for discretionary matching contributions determined annually by the Board of Directors. For the year ending December 31, 2022 and 2021, the company has elected to match, the total expense was $122 thousand and $108 thousand.

Operating Leases

As of December 31, 2022, we had 5 Operating leases as follows:

● Office space in Akron, Ohio, with monthly payments of $3 thousand and an incremental borrowing rate of 14.55%. As of December 31, 2022, we had 5 months remaining on the lease.

● Office space in Salt Lake City UT with monthly payments of $24 thousand. As of December 31, 2022, the Company had 44 months remaining on the lease.

● Dangot’s corporate offices are currently located at Yad harutzim 14 Tel-Aviv, Israel and serves as the company’s main operating location. As of December 31, 2022, we had 23 months remaining on the lease.

● The Company lease additional office space for our finance and service department at Yad harutzim 14 Tel-Aviv, Israel. As of December 31, 2022, the Company had 12 months remaining on the lease.

● The Company also lease office and warehouse space for our products and technical support staff in Rival Street, Tel-Aviv, Israel. As of December 31, 2022, the Company had 30 months remaining on the lease.

Other information related to our operating leases is as follows:

In thousands
ROU asset - January 1, 2021	$	76
Amortization		(199	)
Effective foreign exchange rates		121
Increase		3558
ROU asset - December 31, 2021		3,556
Increase		-
Effective foreign exchange rates		(256	)
Amortization		(1,000	)
ROU asset - December 31, 2022	$	2,300

In thousands
Lease liability - January 1, 2021	$	79
Increase		3,558
Effective foreign exchange rates		169
Amortization		(199	)
Lease liability - December 31, 2021		3,607
Decrease		-
Effective foreign exchange rates		(261	)
Amortization		(1,000	)
Lease liability - December 31, 2022	$	2,346

As of December 31, 2022, our operating leases had a weighted average remaining lease term of 29 months and a weighted average discount rate of 5.7%.

The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2022:

In thousands
Year	Minimum lease payments
2023	$	1,102
2024		873
2025		397
2026		176
2027		-
Total		2,548
Less interest		(202	)
Present value of future minimum lease payments		2,346
Less current obligations		(942	)
Long term lease obligations	$	1,404

LITIGATION

The Company was named a defendant in a case involving a former employee who claims he is owed approximately $60 thousand in unpaid commissions. The Company is defending the case. This case was filed in the Superior Court of the State of California, County of San Diego on October 21, 2020.

The company is not a party to any other pending material legal proceeding in which it is defending against any claims of material significance. To the knowledge of management, no federal, state or local governmental agency is presently contemplating any proceeding against the Company. To the knowledge of management, no director, executive officer or affiliate of the Company, any owner of record or beneficially of more than five percent of the Company’s Common Stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding.