Leases

3 Months Ended

Mar. 31, 2024

Note 6. Leases

Operating Leases

The Company leases its office facilities, located in Concord, California and Amersfoort, the Netherlands, and certain equipment and automobiles under non-cancelable operating leases with initial terms in excess of one year that require the Company to pay operating costs, property taxes, insurance and maintenance. The operating leases expire at various dates through 2030, with certain of the leases providing for renewal options, provisions for adjusting future lease payments based on the consumer price index, and the right to terminate the lease early. The Company does not assume renewals in determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The Company recorded the lease right-of-use asset and obligation at the present value of lease payments over the lease term. The rates implicit in the Company’s leases are generally not readily determinable. The Company must estimate its incremental borrowing rate to discount the lease payments to present value. Operating lease assets also include lease incentives.

The Company reduced its office space and ceased using approximately 15,000 square feet of rentable area of corporate office building during the third quarter of 2023.

Supplemental cash flow information related to operating leases is as follows (dollars in thousands):


	Three Months Ended
	March 31,
	2024		2023
Cash payments for operating leases	$	968	$	934
Right-of-use assets obtained in exchange for operating lease obligations		140		245



	Three Months Ended
	March 31,
	2024			2023
Weighted-average remaining lease term	5.2 years			6.3 years
Weighted-average discount rate		8.5	%		8.5	%

Future minimum non-cancelable payments under operating leases as of March 31, 2024, were as follows (in thousands):


	Operating Leases
2024	$	2,714
2025		3,314
2026		3,162
2027		3,455
2028		3,255
Thereafter		4,172
Total future lease payments	$	20,072
Less imputed interest		4,415
Present value of lease liabilities (1)	$	15,657

(1) Lease liabilities include those operating leases that we plan to sublease as a part of our facilities consolidation restructuring efforts.

The operating lease expense for the three months ended March 31, 2024 and 2023, were as follows (in thousands):


	Three Months Ended
	March 31,
	2024		2023
Operating lease expense	$	964	$	773

As of March 31, 2024, the Company had no leases that have not yet commenced.