A.

On March 4, 2004, the Israel innovation authority (IIA) provided Integrity Israel with a grant of approximately $93 thousand (NIS 420 thousand), for its plan to develop a non-invasive blood glucose monitor (the “Development Plan”). Integrity Israel is required to pay royalties to the IIA 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 thousand, plus interest at LIBOR from the date of grant. As of December 31, 2021, the remaining contingent liability with respect to royalty payment on future sales equals approximately $43 thousand, excluding interest. Such contingent obligation has no expiration date.

As of December 31, 2021, the Group accrued royalties to the IIA in insignificant amounts.

B.

On August 1, 2017 the Company entered into an Advisory Agreement with Andrew Garrett, Inc. (AGI), pursuant to which the Company engaged AGI as placement agent 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 was in effect until October 31, 2019.

During the year ended December 31, 2020 the Company paid the placement Agent approximately $2 million for placement services (see above) in cash. In addition, during the year ended December 31, 2020, $756 thousand representing the fair value of warrants issued as consideration for placement agent services to AGI. This amount was accounted for as warrants with down-round protection. Upon issuance, the fair value was recognized as an increase in additional paid in capital.

C.

Since March 2021 Integrity Israel is renting several workspaces at office building in the city Or – Yehoda. This workspace rent replaces the principal offices the Company in the city Ashdod. According to the new agreement the Company renting those flexible shared workspaces for period shorter than one year.