OPERATING LEASE COMMITMENTS

6 Months Ended

Jun. 30, 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 June 30, 2025, are as follows:

	June 30, 2025 Operating Lease Commitments
(in thousands)
2025 (remaining)	$	389
2026		774
2027		693
2028		433
2029 & Thereafter		369
Total	$	2,658
Less imputed interest		(235	)
Total operating lease liabilities	$	2,423

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 and six months ended June 30, 2025, include facility related operating lease costs of $184,000 and $366,000, respectively, and short-term lease costs of $10,000 and $19,000, respectively.  In the prior year, components of our lease expense for the three months and six months ended June 30, 2024, include facility related operating lease costs of $207,000 and $415,000, respectively, and short-term lease costs of $9,000 and $19,000, respectively. There were no new operating leases during the six months ended June 30, 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 June 30, 2025, and December 31, 2024:

	Balance at June 30, 2025		Balance at December 31, 2024
(in thousands)
Right-of-use assets (Long-term other assets)	$	2,328	$	2,704
Lease liability-short term (Other accrued liabilities)	$	673	$	640
Lease liability-long term (Operating lease liabilities)	$	1,750	$	2,064

At June 30, 2025, the weighted average remaining lease term is 3.7 years and the weighted average discount rate used is 5%.