|3 Months Ended|
Mar. 31, 2021
Note 7 – Leases
The Company leases an office in Fort Lauderdale, Florida under an operating lease. The term expires November 2024. The annual base rent is subject to annual increases of 2.75%. As described within Note 10, the Company shares this space with a related party pursuant to the Shared Space Agreement, as defined below.
The Company leases an office in Israel under an operating lease. The term expires on December 31, 2022. The annual base rent is subject to increases of 4%.
The Company leases vehicles under operating leases that expire at various dates through 2022.
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.
The components of lease cost and supplemental balance sheet information for the Company’s lease portfolio were as follows:
The Company records operating lease payments to lease expense using the straight-line method. The Company’s lease expense was $62 and $84 for the three months ended March 31, 2021 and 2020, respectively, included in general and administrative expenses which is net of the related party license fee of $47 and $35 for the three months ended March 31, 2021 and 2020, respectively (see Note 10).
The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.
Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef