OPERATING LEASE COMMITMENTS

3 Months Ended

Mar. 31, 2025

OPERATING LEASE COMMITMENTS

OPERATING LEASE COMMITMENTS

NOTE 5– OPERATING LEASE COMMITMENTS

We have 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 March 31, 2025 are as follows:

	March 31, 2025 Operating Lease Commitments
(in thousands)
2025 (remaining)	$	575
2026		764
2027		686
2028		433
2029 & Thereafter		369
Total	$	2,827
Less imputed interest		(265	)
Total operating lease liabilities	$	2,562

For the largest lease component, 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 components of our lease expense for the three months ended March 31, 2025 and 2024 include facility related operating lease costs of $182,000 and $208,000, respectively, and short-term lease costs of $9,500 and $9,400, respectively. There were no new operating leases during the three months ended March 31, 2025.

The Redmond, Washington headquarters facility lease runs to October 31, 2029, at approximately 20,460 square feet.  The lease for the facility located in Shanghai, China runs 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 March 31, 2025 and December 31, 2024:

	Balance at March 31, 2025		Balance at December 31, 2024
(in thousands)
Right-of-use assets (Long-term other assets)	$	2,468	$	2,704
Lease liability-short term (Other accrued liabilities)		655		640
Lease liability-long term (Operating lease liabilities)		1,906		2,064

At March 31, 2025, the weighted average remaining lease term is 3.9 and the weighted average discount rate used is 5%.