LEASES

9 Months Ended

Sep. 30, 2022

LEASES

Note 5 - Leases

NOTE 5 – LEASES

Our leasing arrangements are primarily for facility leases we use to conduct our operations. The following table presents our future lease payments for long-term operating leases as of September 30, 2022:

	Operating Lease Commitments
(in thousands)
2022 (remaining)	$	218
2023		870
2024		798
2025		577
2026		125
Thereafter		43
Total	$	2,631
Less imputed interest		(205	)
Total operating lease liabilities	$	2,426

Cash paid for operating lease liabilities for the three and nine months ended September 30, 2022 was $138,000 and $555,000, respectively.  There were three new operating leases during the nine months ended September 30, 2022.

The following table presents supplemental balance sheet information related to leases:

	Balance at September 30, 2022		Balance at December 31, 2021
(in thousands)
Right-of-use assets (Long-term other assets)	$	2,250	$	2,793
Lease liability-short term (Other accrued liabilities)		767		601
Lease liability-long term (Operating lease liabilities)		1,659		2,277

At September 30, 2022, the weighted average remaining lease term is 3.21 years and the weighted average discount rate used is 5%.

The components of our lease expense for the three and nine months ended September 30, 2022 include operating lease costs of $209,000 and $642,000, respectively, and short-term lease costs of $8,000 and $35,000, respectively.

During the fourth quarter of 2021, we amended our lease agreement for the Redmond, Washington headquarters facility, extending the lease to January 31, 2026.  The lease is for approximately 20,460 square feet. 

In April 2021, we signed a lease extension effective November 1, 2021  that extends the lease for a facility located in Shanghai, China through October 31, 2024.  This lease is for approximately 19,400 square feet.

Our lease for our facility located near Munich, Germany ran through February 28, 2022 and in March 2022 we entered into a lease extension to August 2027.  This lease is for approximately 4,895 square feet.