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Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

NOTE 9 –

COMMITMENTS AND CONTINGENT LIABILITIES

	A.	On March 4, 2004, the OCS provided Integrity Israel with a grant of approximately $93,300 (NIS 420,000), for its plan to develop a non-invasive blood glucose monitor (the “Development Plan”). Integrity Israel is required to pay royalties to the OCS at a rate ranging between 3-5% of the proceeds from the sale of the Group’s products arising from the Development Plan up to an amount equal to $93,300, plus interest at LIBOR from the date of grant. As of December 31, 2019, the remaining contingent liability with respect to royalty payment on future sales equals approximately $43,000, excluding interest. Such contingent obligation has no expiration date.

		As of December 31, 2019, and 2018, the Group accrued royalties to the OCS in the amounts of $6,938 and $4,418, respectively.

	B.	Integrity Israel leases approximately 5,500 sq. ft. of office space in the city of Ashdod, Israel for its principal offices. The lease term began on December 1, 2015 for a period of 5 years which can be extended for an additional 5 years at the option of the Company. Monthly lease payments including maintenance approximate $10,000. The Company estimates that its minimal rent and maintenance payments for the remaining original lease term, will approximate $110,000 per year only further over each of the next 11 months. In connection with the lease agreement, Integrity Israel provided the landlord a bank guarantee in the amount of approximately $36,596 (NIS 137,162) that can be exercised by the landlord in the case Integrity Israel fails to pay the monthly rent payments. The guarantee is renewed on an annual basis for a period of 4 years and is secured by funds on deposit with the bank, which generally must be sufficient to cover the principal amount guarantee.

	C.	On August 1, 2017 the Company entered into an Advisory Agreement with AGI, pursuant to which the Company retained AGI on a non-exclusive basis to provide certain advisory services to the Company for a period of 9 months which was subsequently extended twice and is now in effect to October 31, 2019.

		The Company paid the Placement Agent $658,671 and $784,770 in cash during 2019 and 2018, which includes all amounts for the above advisory service agreements, inclusive, and the offerings.