OPERATING LEASE COMMITMENTS

9 Months Ended

Sep. 30, 2024

OPERATING LEASE COMMITMENTS

OPERATING LEASE COMMITMENTS

NOTE 5 – OPERATING LEASE COMMITMENTS

Commitments under non-cancelable operating leases and other agreements, primarily for factory and office space, with initial or remaining terms of one year or more as of September 30, 2024 are as follows:

	September 30, 2024 Operating Lease Commitments
(in thousands)
2024 (remaining)	$	193
2025		869
2026		407
2027		275
2028 & Thereafter		-
Total	$	1,744
Less imputed interest		(101	)
Total operating lease liabilities	$	1,643

Facilities account for the largest portion of our lease commitments. The Company has three facilities with our headquarters and primary engineering and operational functions located in Redmond, Washington. Our two subsidiary facilities in Munich, Germany and Shanghai, China provide extended worldwide sales, service, engineering and operation services. The Shanghai facility lease was renewed for an additional three years with a new expiration date of October 31, 2027. There were no other new operating leases during the three and nine months ended September 30, 2024. The components of our lease payments for the three and nine months ended September 30, 2024, include facility related operating lease costs of $214,000 and $629,000, respectively, and short-term lease costs of $9,000 and $28,000, respectively.

The Redmond, Washington headquarters facility lease runs to January 31, 2026 at approximately 20,460 square feet. The lease for the facility located in Shanghai, China was renewed for an additional three years to October 31, 2027 at approximately 19,400 square feet. The lease for the facility located near Munich, Germany runs to August 2027 at approximately 4,895 square feet.

The following table presents supplemental balance sheet information related to leases as of September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
(in thousands)
Right-of-use assets (Long-term other assets)	$	1,643	$	1,363
Lease liability-short term (Other accrued liabilities)		779		798
Lease liability-long term (Operating lease liabilities)		864		703

As of September 30, 2024, the weighted average remaining lease term is 2.3 years and the weighted average discount rate used is 5%. The third quarter increases in the valuation of right-of-use assets, lease liabilities and weighted average lease term are due to the Shanghai lease renewal.