LEASES

12 Months Ended

Dec. 31, 2023

NOTE 9 – LEASES

The components of operating lease cost for the years ended December 31, 2023 and 2022 were as follows:

SCHEDULE OF OPERATING LEASE COST

	2023		2022
	December 31,
	2023		2022

Operating lease costs		54,723		80,501

Supplemental cash flow information related to operating leases was as follows:

	2023		2022
	December 31,
	2023		2022

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		51,353		62,679
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases		15,709		47,280

Supplemental balance sheet information related to operating leases was as follows:

	2023			2022
	December 31,
	2023			2022

Operating leases:
Operating leases right-of-use asset		56,568			121,855

Current operating lease liabilities		40,515			66,311
Non-current operating lease liabilities		7,181			40,023
Total operating lease liabilities		47,696			106,334

Weighted average remaining lease term (years)		1.08			1.78

Weighted average discount rate		4	%		4	%

N2OFF, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(U.S. dollars)

NOTE 9 – LEASES (continue)

Future minimum lease payments under non-cancellable leases as of December 31, 2023 were as follows:

	2023

2024		41,233
2025		7,739
Total operating lease payments		48,972
Less: imputed interest		(1,276	)
Present value of lease liabilities		47,696

In September 2021, the Company signed a lease agreement for an office and operational space in Neve Yarak, lsrael for a period of 1 year with monthly payments of $2,000 and an option to extend the agreement for an additional 2 years with monthly payment of $2,500 in the first option period and $2,750 in the second option period. The Company exercised its option to extend the lease agreement for an additional 2 years.

A right-of-use assets in the amount of $152,472 and lease liabilities in the amount of 152,472 have been recognized in the balance sheet in respect of these leases.

In December 2021, the Company signed a car rental lease agreement for a period of 3 years with monthly payments of $950. A lease right-of-use asset and a related liability in the amount of $34,362 have been recognized in the balance sheet in respect of this lease. 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 $600 and an option to extend the agreement for an additional 1 year with monthly payments of $630. A lease right-of-use asset and a related liability in the amount of $14,633 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 $670 and an option to extend the agreement for an additional 1 year with monthly payments of $704. A lease right-of-use asset and a related liability in the amount of $15,709 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 $1,300. A lease right-of-use asset and a related liability in the amount of $47,280 have been recognized in the balance sheet in respect of this lease.

N2OFF, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(U.S. dollars)