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 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.

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 

The Company records operating lease payments to lease expense using the straight-line method. The Company’s lease expense was $258 and $294 for the years ended December 31, 2021 and 2020, respectively, included in general and administrative expenses, which is net of the related party license fee of $189 and $172 for the years ended December 31, 2021 and 2020, respectively (see Note 10).

Future minimum lease payments under non-cancellable operating leases as of December 31, 2021 were as follows:

 Schedule of Future Minimum Lease Payments for Capital Leases

The following table summarizes the cash paid for amounts included in the measurement of lease liabilities for the years ended December 31, 2021 and 2020:

Schedule of Measurement of Lease Liability