Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2.2
Leases
9 Months Ended
Sep. 30, 2022
Leases  
Leases

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 2024.

 

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:

Schedule of Lease Cost and Supplemental Balance Sheet Information

    2022     2021     2022     2021  
   

Three Months ended

September 30,

   

Nine Months ended

September 30,

 
    2022     2021     2022     2021  
Lease Cost                                
Operating lease cost, net of related party license fee   $ 16     $ 36     $ 78     $ 100  
Variable lease cost     30       30       90       90  
Total lease cost   $ 46     $ 66     $ 168     $ 190  

 

 

   

As of

September 30,

   

As of

December 31,

 
    2022     2021  
Assets                
Operating lease, right-of-use-asset   $ 471     $ 687  
Liabilities                
Current                
Operating lease liabilities   $ 248     $ 307  
Non-current                
Operating lease liabilities, net of current portion     220       385  
Total lease liabilities   $ 468     $ 692  
                 
Other information:                
Weighted average remaining lease term - operating leases     1.90 years       2.49 years  
Weighted-average discount rate - operating leases     7.46 %     7.66 %

 

The Company records operating lease payments to lease expense using the straight-line method. The Company’s lease expense was $46 and $168 for the three and nine months ended September 30, 2022, respectively, included in general and administrative expenses which is net of the related party license fee of $66 and $173 for the three and nine months ended September 30, 2022, respectively (see Note 10). The Company’s lease expense was $66 and $190 for the three and nine months ended September 30, 2021, included in general and administrative expenses which is net of the related party license fee of $47 and $141 for the three and nine months ended September 30, 2021, respectively.