| LEASES |
| |
a. |
Disclosures for leases in which the Company acts as lessee: |
| |
1) |
The Group companies have entered into leases of buildings and motor vehicles which are used for their ongoing operations. |
| | 2) | The Company’s leases of buildings have a lease term of 2-10 years whereas leases of motor vehicles have lease terms of 3-4 years. |
| | 3) | Information on leases: |
| | |
Year ended December 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| | |
USD in thousands | |
| | |
| | |
| | |
| |
| Interest expense on lease liabilities | |
| 103 | | |
| 193 | | |
| 181 | |
| Total cash outflow for leases | |
| 1,001 | | |
| 1,017 | | |
| 1,711 | |
| |
b. |
Lease extension and termination options: |
The Company has leases that include
both extension and termination options. These options provide flexibility in managing the leased assets and align with the Company’s
business needs.
In leases that contain noncancelable
lease periods of 3-10 years, the Company did not include in the lease term the exercise of extension options existing in the lease agreements.
In leases of motor vehicles, the Company
does not include in the lease term the exercise of extension options since the Company does not ordinarily exercise options that extend
the lease period beyond five years (without the extension option). | | c. | Disclosures in respect of right-of-use assets, net: |
2025
| | |
Office lease | | |
Motor
Vehicles | | |
Total | |
| | |
USD in thousands | |
| Cost: | |
| | |
| | |
| |
| | |
| | |
| | |
| |
| Balance as of January 1, 2025 | |
| 4,149 | | |
| 2,851 | | |
| 7,000 | |
| Additions during the year: | |
| | | |
| | | |
| | |
| New leases | |
| - | | |
| 343 | | |
| 343 | |
| Terminated lease | |
| (50 | ) | |
| (16 | ) | |
| (66 | ) |
| Classification | |
| - | | |
| 6 | | |
| 6 | |
| Adjustments arising from indexation | |
| 28 | | |
| - | | |
| 28 | |
| Adjustments arising from translating financial statements from functional currency to presentation currency | |
| 593 | | |
| 433 | | |
| 1,026 | |
| | |
| | | |
| | | |
| | |
| Balance as of December 31, 2025 | |
| 4,720 | | |
| 3,617 | | |
| 8,337 | |
| | |
| | | |
| | | |
| | |
| Accumulated depreciation: | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | |
| Balance as of January 1, 2025 | |
| 2,897 | | |
| 1,951 | | |
| 4,848 | |
| Additions during the year: | |
| | | |
| | | |
| | |
| Depreciation in the year | |
| 411 | | |
| 589 | | |
| 1,000 | |
| Adjustments arising from translating financial statements from functional currency to presentation currency | |
| 449 | | |
| 329 | | |
| 778 | |
| | |
| | | |
| | | |
| | |
| Balance as of December 31, 2025 | |
| 3,757 | | |
| 2,869 | | |
| 6,626 | |
| | |
| | | |
| | | |
| | |
| Depreciated cost as of December 31, 2025 | |
| 963 | | |
| 748 | | |
| 1,711 | |
2024
| | |
Office lease | | |
Motor
Vehicles | | |
Total | |
| | |
USD in thousands | |
| Cost: | |
| | |
| | |
| |
| | |
| | |
| | |
| |
| Balance as of January 1, 2024 | |
| 4,124 | | |
| 2,418 | | |
| 6,542 | |
| Additions during the year: | |
| | | |
| | | |
| | |
| New leases | |
| - | | |
| 633 | | |
| 633 | |
| Terminated lease | |
| - | | |
| (25 | ) | |
| (25 | ) |
| Classification | |
| - | | |
| (168 | ) | |
| (168 | ) |
| Adjustments arising from indexation | |
| 47 | | |
| - | | |
| 47 | |
| Adjustments arising from translating financial statements from functional currency to presentation currency | |
| (22 | ) | |
| (7 | ) | |
| (29 | ) |
| | |
| | | |
| | | |
| | |
| Balance as of December 31, 2024 | |
| 4,149 | | |
| 2,851 | | |
| 7,000 | |
| | |
| | | |
| | | |
| | |
| Accumulated depreciation: | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | |
| Balance as of January 1, 2024 | |
| 2,532 | | |
| 1,500 | | |
| 4,032 | |
| Additions during the year: | |
| | | |
| | | |
| | |
| Depreciation in the year | |
| 343 | | |
| 452 | | |
| 795 | |
| Adjustments arising from translating financial statements from functional currency to presentation currency | |
| 22 | | |
| (1 | ) | |
| 21 | |
| | |
| | | |
| | | |
| | |
| Balance as of December 31, 2024 | |
| 2,897 | | |
| 1,951 | | |
| 4,848 | |
| | |
| | | |
| | | |
| | |
| Depreciated cost as of December 31, 2024 | |
| 1,252 | | |
| 900 | | |
| 2,152 | |
| |
d. |
For an analysis of maturity dates of lease liabilities, see Note 16b. |
| | e. | The Company has leases of motor vehicles for a period of up to 12 months and for periods of 12-36 months. For lease periods up to 12 months, the Company applies the practical expedient in IFRS 16 and recognizes lease payments as an expense using the straight-line method over the lease term. |
In May 2017, the Company entered into a lease for 1,600 square meters of office space in the city of Or Yehuda, Israel. The lease is for a period of ten years with an option for extension by another five years. The monthly lease fees are approximately NIS 110 thousand ($34.5 thousand), linked to the Israeli Consumer Price Index of May 2017 with the addition of VAT. The lease period began on April 1, 2018.
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