NOTE 9 – LEASES

Right-of-use assets

	Cost								Accumulated depreciation
	Balance at		Additions		Deletions		Balance at		Balance at		Additions		Deletions		Balance at		Net book value
	beginning		during		during		end of		beginning		during		during		end of		December 31,
	of year		year		year		year		of year		year		year		year		2024		2025
	in USD thousands								in USD thousands								in USD thousands
Composition in 2025
Property		1,551		-		-		1,551		810		135		-		945		741		606
Motor vehicles		456		-		196		260		230		79		139		170		226		90
		2,007		-		196		1,811		1,040		214		139		1,115		967		696

Lease liabilities

	Balance at		Additions		Deletions		Interest expense		Exchange differences		Payments		Balance at
	beginning		during		during		during		during		during		end of
	of year		year		year		year		year		year		year
			in USD thousands
Composition in 2025
Property		1,409		-		-		176		174		596		1,163
Motor vehicles		194		-		71		10		17		102		48
		1,603		-		71		186		191		698		1,211

Additional disclosures

The Company leases its premises in Israel under a lease agreement entered into in August 2014. Payments under the lease commenced in June 2015, and the initial term of the lease expired in June 2020. The lease agreement includes three options to extend the lease through June 30, 2030 in the aggregate, each at a 5% increase to the preceding lease payment amount. The Company exercised its first and second options to extend the lease through June 30, 2028, and is currently making monthly lease payments of approximately $30,000. In addition to the monthly lease payments, the Company also pays building monthly maintenance charges of approximately $9,700.

The Company has entered into lease agreements in connection with a number of vehicles. The lease periods are generally for three years. The annual lease fees, linked to the CPI, are approximately $215,000. To secure the terms of the lease agreements, the Company has prepaid two months of lease payments to the leasing companies.

As of December 31, 2025, minimum future rental payments (taking into consideration the aforementioned extension periods) under the leases are as follows:

Year	Property		Motor vehicles		Total
	in USD thousands
2026		332		106		438
2027		348		21		369
2028		348		-		348
2029-2030		523		-		523
		1,551		127		1,678

Extension and termination options are included in the property lease. These are used to maximize operational flexibility in terms of managing the assets used in the Company’s operations. The substantial majority of extension and termination options are exercisable solely by the Company and not by the lessors.