LEASES

9 Months Ended

Sep. 30, 2024

LEASES:

LEASES

4. LEASES

The Company leases administrative and sales offices and certain equipment under non-cancellable operating leases, which contain various renewal or termination options and, in some cases, require payment of common area costs, taxes and utilities. These operating leases expire at various dates through 2028. The Company had no leases that were classified as a financing lease as of September 30, 2024, and December 31, 2023.

Lease expense was comprised of the following (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Operating lease expense	$	401	$	382	$	1,161	$	1,153
Short-term lease and variable lease expense (1)		268		239		754		673
Total lease expense	$	669	$	621	$	1,915	$	1,826

(1) Leases with an initial term of 12 months or less are not recorded on the accompanying condensed consolidated balance sheets, and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease expense for the periods presented primarily included common area maintenance charges.

Supplemental condensed consolidated balance sheets information related to operating leases was as follows:

	September 30,			December 31,
	2024			2023
Weighted average remaining lease term under operating leases (in years)		3.5			4.4
Weighted average discount rate for operating lease liabilities		5.98	%		4.96	%

Maturities of operating lease liabilities as of September 30, 2024, were as follows (in thousands):

Year Ending December 31,	Amount
2024 (remaining three months)	$	492
2025		1,850
2026		1,551
2027		1,490
2028		847
Total future minimum lease payments		6,230
Less: Interest (1)		(654)
Present value of future minimum lease payments under operating lease liabilities (2)	$	5,576

(1) Calculated using incremental borrowing interest rate for each lease.

(2) Includes the current portion of operating lease liabilities of $1.7 million as of September 30, 2024.