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LEASES
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
LEASES LEASES
We determine if an arrangement is a lease at inception and whether the arrangement is classified as an operating or finance lease. At commencement of the lease, we record a right-of-use (“ROU”) asset and lease liability in the balance sheet based on the present value of lease payments over the term of the arrangement. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. If the implicit rate is not readily determinable in the contract, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Contract terms may include options to extend or terminate the lease, and, when we deem it is reasonably certain that we will exercise that option, it is included in the ROU asset and liability.
Operating leases reflect lease expense on a straight-line basis, while any finance leases result in the separate presentation of interest expense on the lease liability and amortization expense of the ROU asset.
In August 2024, we entered into an operating lease for a new location for our corporate headquarters and manufacturing and research operations. The new operating lease commences in April 2025 and expires in 2035. The previous operating lease for our corporate headquarters expired in November 2024. However, our operating lease for our existing manufacturing and research operations was extended and now expires in May 2025.
The components of lease cost are as follows (in thousands):
Years Ended December 31,
20242023
Operating lease cost$285 $231 
LEASES LEASES
We determine if an arrangement is a lease at inception and whether the arrangement is classified as an operating or finance lease. At commencement of the lease, we record a right-of-use (“ROU”) asset and lease liability in the balance sheet based on the present value of lease payments over the term of the arrangement. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. If the implicit rate is not readily determinable in the contract, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Contract terms may include options to extend or terminate the lease, and, when we deem it is reasonably certain that we will exercise that option, it is included in the ROU asset and liability.
Operating leases reflect lease expense on a straight-line basis, while any finance leases result in the separate presentation of interest expense on the lease liability and amortization expense of the ROU asset.
In August 2024, we entered into an operating lease for a new location for our corporate headquarters and manufacturing and research operations. The new operating lease commences in April 2025 and expires in 2035. The previous operating lease for our corporate headquarters expired in November 2024. However, our operating lease for our existing manufacturing and research operations was extended and now expires in May 2025.
The components of lease cost are as follows (in thousands):
Years Ended December 31,
20242023
Operating lease cost$285 $231