OPERATING LEASE

12 Months Ended

Dec. 31, 2021

The Company has operating leases for corporate offices and vehicles. The properties primarily relate to the Company’s principal executive office in Bridgewater, New Jersey and office space in Israel.

On March 13, 2019, the Company signed an amendment to the original lease agreement for its principal executive office in Bridgewater, New Jersey (the "Lease Amendment”). The Lease Amendment includes an extension of the lease period of the 10,000 square feet previously leased under the original agreement (the "Original Space") and an addition of 4,639 square feet (the "Additional Space”). The Company entered the Additional Space following a period of preparation by the lessor completed during September 2019 (the "Commencement Date"). The lease is due to expire on August 31, 2022.

Pursuant to the Lease Amendment, the Company recognized an additional right of use asset and liability in the amount of $0.7 million. The Additional Space was considered a new lease agreement and was recognized as a right of use asset and liability, in the amount of $0.3 million, on the Commencement Date.

The lease agreement for the office space in Israel expires in December 2022.

Additionally, the Company entered into operating lease agreements in connection with the leasing of vehicles. The lease periods are generally for three years. To secure the terms of certain of the vehicle lease agreements, the Company has made prepayments to the leasing company, representing approximately three months of lease payments. These amounts have been recorded as part of the operating lease right to use assets. In connection with the strategic business review and sale of the MST Franchise certain vehicle leases were transferred to members of the commercial workforce resulting in the elimination of $0.5 million of right of use assets and $0.5 million of right of use liabilities.

Operating lease costs for the year ended December 31, 2021 are as follows:


(in thousands)	Year Ended December 31 2021		Year Ended December 31 2020

Office lease expenses	$	357	$	961
Vehicles lease expenses	$	434	$	390

The operating lease costs include an immaterial amount of variable lease payments for the years ended December 31, 2021 and 2020, respectively.

Operating cash flows, for amounts included in the measurement of lease liabilities are as follows:


	Year Ended December 31 2021		Year Ended December 31 2020
Office leases	$	373	$	971
Vehicles leases	$	434	$	390

Supplemental information related to leases are as follows:


	December 31 2021			December 31 2020
Operating lease right-of-use assets	$	338		$	1,583
Operating lease liabilities	$	349		$	1,610
Weighted average remaining lease term	0.77			1.96
Weighted average discount rate	13.10		%	13.10		%

Maturities of lease liabilities are as follows:


2022	$	334
2023	32
Total lease payments	366
Less imputed interest	(17)
Total lease liability	$	349

As of December 31, 2021, the Company had a lien in the amount of $0.6 million on the Company’s cash in respect of bank guarantees granted in order to secure the lease agreements.