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Note 15 - Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
NOTE
15:
COMMITMENTS AND CONTINGENCIES
 
a. The Company is
not
a party to any litigation or other legal proceedings that the Company believes could reasonably be expected to have a material adverse effect on the Company’s business, results of operations and financial condition.
 
b. As of
December 
31,
2019,
the Company and its subsidiaries had several non-cancelable operating leases, primarily for facilities and equipment. These leases generally contain renewal options and require the Company and its subsidiaries to pay all executory costs such as maintenance and insurance. In addition, the Company has several fixed service agreements with sub-contractors.
 
As of
December 
31,
2019,
future purchase obligations and minimum rental commitments for leasehold properties and operating leases with non-cancelable terms are as follows:
 
   
Minimum rental
commitments for
leasehold
properties
   

Commitments
for
other
lease
obligations
   
Other purchase

obligations
   
Total
 
                                 
2020
  $
530
    $
3,989
    $
1,119
    $
5,638
 
2021
   
141
     
4,070
     
101
     
4,312
 
2022
   
113
     
2,020
     
     
2,133
 
2023 and thereafter
   
123
     
     
     
123
 
Total
  $
907
    $
10,079
    $
1,220
    $
12,206
 
 
c. Royalties:
 
The Company participated in programs sponsored by the Israeli government for the support of research and development activities. Through
December 
31,
2019,
the Company had obtained grants from the IIA for certain of the Company’s research and development projects. The Company is obligated to pay royalties to the IIA, amounting to
3%
-
3.5%
of the sales of the products and other related revenues (based on the dollar) generated from such projects, up to
100%
of the grants received. Royalty payment obligations also bear interest at the LIBOR rate. The obligation to pay these royalties is contingent on actual sales of the products and in the absence of such sales,
no
payment is required.
 
Royalty expenses relating to the IIA grants included in cost of revenues for the years ended
December 
31,
2017,
2018
and
2019
amounted to
$1,016,
$842
and
$715,
respectively. As of
December 
31,
2019,
the aggregate contingent liability to the IIA (including interest) amounted to
$25,789.