COMMITMENTS

6 Months Ended

Jun. 30, 2023

NOTE 7 – COMMITMENTS

Leases

In March 2022, we leased a car in Israel with a lease term of 36 months expiring in July 2024.

We used a discount rate of 6.75% in determining our operating lease liabilities, which represented our incremental borrowing rate. Short-term leases with initial terms of twelve months or less are not capitalized.

We determine if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset.

Right-of-use assets and liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement date. Certain lease agreements contain extension options; however, we have not included such options as part of right-of-use assets and lease liabilities because we originally did not expect to extend the leases. We measure and record a right-of-use asset and lease liability based on the discount rate implicit in the lease, if known. In cases where the discount rate implicit in the lease is not known, we measure the right-of-use assets and lease liabilities using a discount rate equal to our estimated incremental borrowing rate for loans with similar collateral and duration.

Operating lease expense is comprised of the following:

Three months ended

June 30,

Six months ended

June 30,

2023

2022

2023

2022

Operating lease cost

2,097

3,446

5,933

7,050

Maturities of lease liabilities are as follows:

	Operating Leases
2023	$	7,247
2024		6,211
Total lease payments		13,458
Less imputed interest		(515	)
Total lease liabilities		12,943
Less current portion of lease liabilities		-
Long-term lease liabilities	$	12,943

METRO ONE TELECOMMUNICATIONS INC 10-Q