NOTE 3 - OPERATING LEASES

The Company leases office and research and development space under several agreements. The annual lease consideration is a total of $196 and is linked to the Israeli consumer price index. In April 2023, the Company extended the period of the lease agreement for an additional five years, expiring on June 30, 2028, with two options for early termination by the Company subject to a notice period.

The Company recorded the related asset and obligation at the present value of lease payments over the expected terms, discounted using the lessee’s incremental borrowing rate, which was 13.84%. The Company lease agreements do not provide a readily determinable implicit rate. Therefore, the Company estimated the incremental borrowing rate to discount the lease payments based on information available at lease commencement.

As of December 31, 2025, the Company provided bank guarantees of approximately $60, in the aggregate, to secure the fulfillment of its obligations under the lease agreements.

The Company has entered into operating lease agreements for vehicles used by its employees. The lease periods are generally for three years, and the payments are linked to the Israeli consumer price index. To secure the terms of the lease agreement, the Company has made certain deposits to the leasing company, representing approximately three months of lease payments. The annual lease consideration is a total of $44.

The lease cost was as follows:

		Year ended December 31, 2025				Year ended December 31, 2024
Operating lease cost			240				198

Supplemental cash flow information related to leases was as follows:

		Year ended December 31, 2025				Year ended December 31, 2024
Operating cash flows from operating leases			240				198

Supplemental balance sheet information related to operating leases was as follows:

	December 31, 2025			December 31, 2024
Operating Leases
Operating lease right-of-use assets		465			275

Current lease liabilities		230			170
Non-current lease liabilities		260			102
Total lease liabilities		490			272

Weighted-average remaining lease term (in years)		2.43			1.54
Weighted-average discount rate		14	%		14	%

As of December 31, 2025, the maturity of lease liabilities under our non-cancelable operating leases were as follows:

2026	238
2027	222
2028	107
Total future minimum lease payments	567
Less: interest	(77	)
Present value of operating lease liabilities	490