Note 5 – Leases

The Company leases an office in Fort Lauderdale, Florida under an operating lease. The term expires November 2024. The annual base rent is $159 per year, subject to annual increases of 2.75%.

The Company leases an office in Israel under an operating lease that expires on December 31, 2019. The annual base rent is $82. The Company has an option to renew the lease agreement for thirty-six months after the initial term period ends. The annual base rent will increase by 4% beginning on the renewal option date.

The Company leases vehicles under operating leases that expire at various dates through 2021.

Many of these leases provide for payment by the Company, as the lessee, of taxes, insurance premiums, costs of maintenance and other costs which are expenses as incurred. Certain operating leases include escalation clauses and some of which may include options to extend the leases for up to 3 years.

Operating cash flow supplemental information for the six months ended June 30, 2019:

An initial right-of-use asset of $1,065 was recognized as a non-cash asset and operating lease liabilities of $1,074 was recognized as a non-cash liability addition with the adoption of the new lease standard. Cash paid for amounts included in the present value of operating lease liabilities was $176 during the six months ended June 30, 2019.

Future minimum lease payments under non-cancellable operating leases as of June 30, 2019 were as follows:

The Company’s lease expense was $126 and $229 for the three and six months ended June 30, 2019, respectively, included in general and administrative expenses. The Company’s lease expense was $104 and $205 for the three and six months ended June 30, 2018, respectively, included in general and administrative expenses. The Company did not enter into any lease commitments in the six months ended June 30, 2019.