COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2023

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 full-time 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, so the employer may make a discretionary matching contribution equal to a uniform percentage or dollar amount of participants’ elective deferrals for each Plan Year. 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 years ending December 31, 2023 and 2022, the company has elected to match; the total expense was $109 thousand and $122 thousand, respectively.

Operating Leases

As of December 31, 2023, we had 5 Operating leases as follows:

● Office space in Salt Lake City UT with monthly payments of $24 thousand. As of December 31, 2023, the Company had 32 months remaining on the lease.

● Office space in Anaheim, CA with monthly payments of $4 thousand. As of December 31, 2023, the Company had 27 months remaining on the lease.

● Dangot’s corporate offices are currently located at Yad Harutzim 14 Tel-Aviv, Israel. The main corporate office, Yad Harutzim 14, serves as the company’s main building on the 2nd and 3rd floors, used by the management and most of the sales staff, technicians, etc. The corporate office annual lease expense is NIS 784,380. As of December 31, 2023, the Company had 11 months remaining on the lease.

● We lease office space (Gamdan- 1st floor) for our finance and service department at Yad Harutzim 14 Tel-Aviv, Israel. The lease provides for monthly payments of NIS 18,814. As of December 31, 2023, the Company had 12 months remaining on the lease.

● We lease office and warehouse space for our products and technical support staff at Rival Street, Tel-Aviv, Israel. The lease provides for monthly payments of NIS 41,200. AS of December 31, 2023, the Company had 18 months remaining on the lease.

Other information related to our operating leases is as follows:

In thousands
ROU asset - January 1, 2022	$	3,556
Amortization		(1,000	)
Effective foreign exchange rates		(256	)
Increase		-
ROU asset - December 31, 2022		2,300
Increase		1,164
Decrease		(437	)
Effective foreign exchange rates		(273)
Amortization		(892	)
ROU asset – December 31, 2023	$	1,862

In thousands
Lease liability – January 1, 2022	$	3,607
Increase		-
Effective foreign exchange rates		(261	)
Amortization		(1,000	)
Lease liability – December 31, 2022		2,346
Increase		936
Decrease		(661	)
Effective foreign exchange rates		179
Amortization		(904	)
Lease liability - December 31, 2023	$	1,896

As of December 31, 2023, our operating leases had a weighted average remaining lease term of 19.81 months and a weighted average discount rate of 6%.

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, 2023:

In thousands
Year	Minimum lease payments
2024	$	990
2025		707
2026		379
Total		2,076
Less interest		(180	)
Present value of future minimum lease payments		1,896
Less current obligations		(885	)
Long term lease obligations	$	1,011

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. This case was settled in February 2024.

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 government 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 beneficiary 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.