The Company’s lease arrangements consist primarily of corporate and manufacturing facility agreements. The leases expire at various dates through 2033, some of which include options to extend the lease term. The options with the longest potential total lease term consist of options for extension of up to five years following expiration of the original lease term. All of the leases are operating leases. The Company is headquartered in Aliso Viejo, California and has various research and design centers, sales support offices, and manufacturing facilities throughout the world. The key lease terms for the principal locations are summarized below:

The Company holds a six-year operating lease for its 18,000 square foot headquarters in Aliso Viejo, California, which is payable monthly with periodic rent adjustments over the lease term. The lease requires a security deposit of $30, which is recorded in other assets on the Company’s consolidated balance sheets. In November 2022 This lease was extended through the end of October 2028. Rent expense is approximately $42 per month.

In October 2021, the Company entered into a five-year operating lease for its design center in Austin, Texas. Rent for the associated office is payable monthly with periodic rent adjustments over the lease term, which expires in June 2027. Rent expense is approximately $14 per month.

In May 2021, the Company entered into a seven-year operating lease for a location in Detroit, Michigan, which is payable monthly with periodic rent adjustments over the lease term. The lease will expire in 2028 with an initial monthly rent of approximately $24 per month.

In April 2023, the Company entered into a one-year operating lease for an office in San Jose, California in connection with the acquisition of GEO. Rent for the associated office is payable monthly over the lease term, which expires in June 2024. This lease was extended through September 1, 2024 and subsequently terminated. Rent expense was approximately $69 per month.

In March 2024, the Company entered into a six-year operating lease for an office in San Jose, California. Rent for the associated office is payable monthly over the lease term, which expires in April 2030. The lease requires a security deposit of $210. Rent expense is approximately $91 per month.

The Company holds a five-year operating lease for its Scotland Design Center in Edinburgh, Scotland, which is payable monthly with periodic rent adjustments over the lease term. In April 2024 this lease was extended through the end of June 2029. Rent expense is approximately $17 per month.

The Company holds an operating lease for its location in Haifa, Israel. In February 2024 this lease was renewed for three-years through the end of January 2027. Rent expense is approximately $14 per month.

In August 2023, the Company entered into a ten-year operating lease for an office in Ontario, Canada in connection with the acquisition of GEO. Rent for the associated office is payable monthly with periodic rent adjustments over the lease term, which expires in February 2033. Rent expense is approximately $11 per month.

In October 2021, the Company acquired TeraXion and assumed its existing operating lease for an office building and a warehouse in Quebec City, Canada. Rent for the associated office is payable at approximately $53 per month. The lease will expire on May 31, 2032.

In September 2023, the Company entered into a five-year operating lease for an office in Schlieren, Switzerland in connection with the acquisition of Exalos AG. Rent for the associated office is payable monthly with periodic rent adjustments over the lease term, which expires in February 2028. Rent expense is approximately $14 per month.

In November 2022, the Company entered into an operating lease in Shanghai, China. Rent expense is approximately $14 per month. This lease will expire on January 15, 2026.

In November 2022, the Company entered into a three-year operating lease in Suzhou, China. Rent expense is approximately $6 per month.

The Company recorded $882 of impairment charges related to certain right-of-use assets for the year ended December 31, 2024 as part of its restructuring initiative that commenced in August 2024 (see Note 4 - Restructuring costs).

The table below represents lease-related assets and liabilities recorded on the consolidated balance sheet as of December 31, 2024 and 2023 are as follows:


	Balance Sheet Classification	December 31, 2024		December 31, 2023
Assets
Operating lease right-of-use assets	Operating lease right-of-use assets	$	16,107	$	13,790

Liabilities
Operating lease liabilities (current)	Accrued expenses and other current liabilities	$	2,984	$	2,653
Operating lease liabilities (noncurrent)	Operating lease liabilities	14,278		10,850
Total lease liabilities		$	17,262	$	13,503

The following lease costs were included in the consolidated statements of operations for the years ended December 31, 2024, 2023 and 2022:


	Year ended December 31,
	2024		2023		2022
Operating lease cost	$	4,237	$	3,406	$	2,496
Short-term lease cost	—		17		124
Variable lease cost	473		179		174
Total lease cost	$	4,710	$	3,602	$	2,794


	Year ended December 31,
	2024			2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,888		$	3,175
Right-of-use assets obtained in exchange for new operating lease liabilities	$	5,172		$	3,240
Weighted average remaining lease term — operating leases	5.37 years			6.06 years
Weighted average discount rate — operating leases	6.47		%	5.99		%

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the consolidated balance sheet as December 31, 2024:


2025	$	3,994
2026	3,889
2027	3,806
2028	3,464
2027	2,459
Thereafter	2,821
Total minimum lease payments	20,433
Less imputed interest	(3,171)
Present value of future minimum lease payments	17,262
Less current obligations under leases	(2,984)
Long-term lease obligations	$	14,278