COMMITMENTS AND CONTINGENT LIABILITIES

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

NOTE 11:-COMMITMENTS AND CONTINGENT LIABILITIES

a.Lease commitments:

The Group's facilities are leased under several lease agreements for periods ending up to 2023, with options to extend the leases ending up to 2026.

In addition, the Company has various operating lease agreements with respect to motor vehicles.

Lease expenses of office rent and vehicles for the years ended December 31, 2020, 2019 and 2018 were approximately $3,282, $3,129 and $2,934, respectively. Expenses for short-term leases in 2020 were $ 119.

F - 35

ALLOT LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands, except share and per share data

NOTE 11:-COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)

The following table represents the weighted-average remaining lease term and discount rate:

		Year ended December 31, 2020

Weighted average remaining lease term		2.02 years
Weighted average discount rate		1.8%

The discount rate was determined based on the estimated collateralized borrowing rate of the Company, adjusted to the specific lease term and location of each lease.

Maturities of operating lease liabilities were as follows:

Year ending December 31,
2021	$	2,836
2022		1,358
2023		368
2024		120
2025 and thereafter		61

Total lease payments	$	4,743

Less - imputed interest	$	(95	)

Present value of lease liabilities	$	4,648

During the year ended December 31, 2020 the short-term maturities of operating lease liabilities which were not recognized under ASU No. 2016-02, Leases (ASC 842) were $ 139.

b.Major subcontractor:

The Company currently depends on one subcontractor to manufacture and provide certain hardware, warranty and support components for its traffic management systems. If the subcontractor experiences delays, disruptions, quality control problems or a loss in capacity, shipments of products may be delayed and the Company's ability to deliver such products could be materially adversely affected. In the event that the Company terminates its business connection with the subcontractor, it will have to compensate the subcontractor for certain inventory costs, as specified in the agreement with the subcontractor.

c.Liens and guarantees:

As of December 31, 2020, the Company has provided bank guarantees in respect of prepayments from customers in an aggregate amount of approximately $ 501, in addition to bank guarantees in favor of leases agreements in an aggregate amount of approximately $ 503.

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ALLOT LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands, except share and per share data

NOTE 11:-COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)

d.Litigations:

As of December 31, 2020, there are no open litigation against the Company.