LEASES

12 Months Ended

Dec. 31, 2023

LEASES:

The Company has entered into operating leases to facilitate the expansion of its manufacturing, research and development, and selling, general and administrative activities. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when those events are reasonably certain to occur. The interest rate implicit in lease contracts is typically not readily determinable and as such the Company uses the appropriate incremental borrowing rate based on information available at the lease commencement date in determining the present value of the lease payments. Current lease agreements do not contain any residual value guarantees or material restrictive covenants. As of December 31, 2023, the Company did not have any finance leases and no additional operating leases that have not yet commenced.

The following table presents the Company’s operating lease cost and supplemental cash flow information related to the Company’s operating leases (in thousands):


	Year Ended December 31,
	2023		2022		2021
Operating lease cost	$	4,639	$	4,436	$	3,637
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	1,072	$	4,750	$	26,174

The following table presents the Company’s operating lease right-of-use assets and liabilities (in thousands):


	December 31,
	2023		2022
Right-of-use assets	$	24,910	$	31,486
Short-term lease liabilities		3,533		3,737
Long-term lease liabilities		22,855		29,039

The following table presents weighted average assumptions used to compute the Company’s right-of-use assets and lease liabilities:


	December 31, 2023
Weighted average remaining lease term (in years)		6.7
Weighted average discount rate		3.7	%

As of December 31, 2023, current operating leases had remaining terms between three and eight years with options to extend the lease terms.

Undiscounted future minimum lease payments as of December 31, 2023, by year and in the aggregate, having non-cancelable lease terms in excess of one year were as follows (in thousands):


	Maturities of
	Operating Lease Liabilities
2024	$	4,267
2025		4,321
2026		4,401
2027		4,323
2028		3,996
Thereafter		8,083
Total lease payments		29,391
Less: imputed interest		(3,003	)
Present value of lease payments	$	26,388