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 expensed as incurred. Certain operating leases include escalation clauses and some of which may include options to extend the leases for up to 3 years.

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. An initial right-of-use asset and operating lease liability in the amount of $176 was recognized as a non-cash asset and liability upon the exercise of its option to extend the Israel lease. 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 $294 and $397 for the years ended December 31, 2020 and 2019, respectively, included in general and administrative expenses which is net of the related party license fee of $172 and $18 for the years ended December 31, 2020 and 2019, respectively (see Note 10).

Future minimum lease payments under non-cancellable operating leases as of December 31, 2020 were as follows:

The following table summarizes the cash paid for amounts included in the measurement of lease liabilities for the years ended December 31, 2020 and 2019: