The Company determines if an arrangement contains a lease at inception. The Company leases facilities under non-cancelable lease agreements expiring through fiscal year 2024. The Company’s agreements do not include variable lease payments or any restrictions or covenants imposed by the leases. As the rate implicit in each lease agreement is not readily determinable, the Company’s incremental borrowing rate was used as the discount rate. The Company’s right-of-use assets and lease liabilities have been adjusted for initial direct costs and prepaid rent but do not reflect any options to extend or terminate its lease agreements, any residual value guarantees, or any leases that have not yet commenced.

The right-of-use assets and lease liabilities related to operating leases were as follows (in thousands):


			December 31,
	March 31, 2024		2023
Right-of-use assets	$	925	$	1,045

Lease liabilities －Current	$	453	$	497
Lease liabilities － Non-Current		432		531
Total lease liabilities	$	885	$	1,028

Rent expense under operating leases was $0.2 million for each of the three months ended March 31, 2024 and 2023.

The rent expense recognized from short-term leases was $6,000 for each of the three months ended March 31, 2024 and 2023.

The following tables summarize the Company’s lease costs and weighted-average assumptions used in determining its right-of-use assets and lease liabilities (in thousands):


	Three Months Ended			Three Months Ended
	March 31, 2024			March 31, 2023
Operating lease cost	$	200		$	190
Cash paid for operating leases	$	219		$	185
Right-of-use assets obtained in exchange for operating lease liabilities (1)	$	58		$	—
Weighted average remaining term for operating leases		1.85		1.17 years
Weighted average discount rate for operating leases		8.1	%		5.6	%

(1) During the three months ended March 31, 2024, the Company extended the term of its lease in Taiwan. This lease was treated as a modification and accounted for as a non-cash change in existing lease liabilities and the right-of-use assets.

During the three months ended March 31, 2023, the Company did not enter into any new lease or lease modification.

As of March 31, 2024, the aggregate future minimum lease payments under non-cancelable operating leases consist of the following (in thousands):


Year Ending December 31,	Amount
2024 (remaining nine months)	$	392
2025		417
2026		157
Total		966
Less effects of discounting		(81	)
Total lease liabilities	$	885

As of March 31, 2024, the Company had purchase commitments with its third-party suppliers through fiscal year 2026. Future minimum payments under purchase commitments total $0.5 million for the remaining nine months ending December 31, 2024, $0.7 million for the year ending December 31, 2025, and $0.3 million for the year ending December 31, 2026.

Although the Company is not currently a party to any legal proceedings and there is no litigation currently threatened, the Company may be subject to legal proceedings, claims and litigation, including intellectual property litigation, arising in the ordinary course of business. Such matters are subject to many uncertainties and outcomes and are not predictable with assurance. The Company accrues amounts that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that the Company believes will result in a probable loss that is reasonably estimable.

During the normal course of business, the Company may make certain indemnities, commitments and guarantees which may include intellectual property indemnities to certain of its customers in connection with the sales of the Company’s products and indemnities for liabilities associated with the infringement of other parties’ technology based upon the Company’s products. The Company’s exposure under these indemnification provisions is generally limited to the total amount paid by a customer under the agreement. However, certain agreements include indemnification provisions that could potentially expose the Company to losses in excess of the amount received under the agreement. In addition, the Company indemnifies its officers, directors and certain key employees while they are serving in good faith in such capacities.

The Company has not recorded any liability for these indemnities, commitments and guarantees in the accompanying condensed consolidated balance sheets. Where necessary, the Company accrues for losses for any known contingent liabilities, including those that may arise from indemnification provisions, when future payment is probable.