Nexentis Technologies Inc. Leases Disclosure
NOTE 12 – LEASES
| A. | The components of operating lease cost for the years ended December 31, 2024 and 2023 were as follows: |
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Operating lease costs | 41 | 55 | ||||||
| B. | Supplemental cash flow information related to operating leases was as follows: |
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from operating leases | 61 | 51 | ||||||
| Right-of-use assets obtained in exchange for lease obligations (non-cash): | ||||||||
| Operating leases | 16 | |||||||
N2OFF, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(USD in thousands, except share and per share data)
NOTE 12 – LEASES (continued)
| C. | Supplemental balance sheet information related to operating leases was as follows: |
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Operating leases: | ||||||||
| Operating leases right-of-use asset | 8 | 56 | ||||||
| 7 | 41 | |||||||
| Non-current operating lease liabilities | 7 | |||||||
| Total operating lease liabilities | 7 | 48 | ||||||
| Weighted average remaining lease term (years) | 0.92 | 1.08 | ||||||
| Weighted average discount rate | 5 | % | 4 | % | ||||
| D. | Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows: |
| 2024 | ||||
| 2025 | 7 | |||
| Total operating lease payments | 7 | |||
| Less: imputed interest | ||||
| Present value of lease liabilities | 7 | |||
In September 2021, the Company signed a lease agreement for an office and operational space in Neve Yarak, Israel for a period of 1 year with monthly payments of $2 and an option to extend the agreement for an additional 2 years with monthly payment of $2.5 in the first option period and $2.75 in the second option period. The Company exercised its option to extend the lease agreement for an additional 2 years. On August 5, 2024, the lease agreement was extended for an additional one-year period, until August 31, 2025 with monthly payments of $2.4.
In December 2021, the Company signed a car rental lease agreement for a period of 3 years with monthly payments of $1. During August 2023, the Company terminated the lease agreement.
On December 15, 2021, the Company entered into a lease agreement for office space in Miami (the “Miami Lease”). The Miami Lease is for a period of 1 year with monthly payments of $0.6 and an option to extend the agreement for an additional 1 year with monthly payments of $0.63. A lease right-of-use asset and a related liability in the amount of $15 have been recognized in the balance sheet in respect of this lease. The Company exercised its option to extend the lease agreement for an additional year. On December 15, 2023, the Company entered into a new lease agreement for office space in Miami for a period of 1 year with monthly payments of $0.67 and an option to extend the agreement for an additional 1 year with monthly payments of $0.7. The Company exercised the option. A lease right-of-use asset and a related liability in the amount of $16 have been recognized in the balance sheet in respect of this lease.
In January 2022, the Company signed a car rental lease agreement for a period of 3 years with monthly payments of $1.
N2OFF, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(USD in thousands, except share and per share data)
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.