Item 2. Properties
Item
2. Properties.
Currently,
Integrity Israel leases approximately 5,500 square feet of office space in the city of Ashdod, Israel for its principal offices. The
lease term began on December 1, 2015 for a period of 5 years which has been extended on august 2020 for an additional 1 years at the
option of the Company. Monthly lease payments including maintenance are approximately $10 thousand. The Company estimates that its minimal
rent and maintenance payments will be approximately $120 thousand per year over each of the next 9 months. In connection with the lease
agreement, Integrity Israel provided the landlord a bank guarantee in the amount of approximately $43 thousand (NIS 137 thousand
based on the exchange rate of $.311:1 NIS as of December 31, 2020) that can be exercised by the landlord in the case Integrity Israel
fails to pay the monthly rent payments. The guarantee is renewed on an annual basis for a period of 5 years and is secured by funds on
deposit with the bank, which generally must be sufficient to cover the principal amount guarantee.
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