Leases

3 Months Ended

Mar. 31, 2024

7. Leases

We account for leases in accordance with ASC Topic 842: Leases.

We enter into lease agreements for the use of real estate space and certain equipment under operating leases and we have no financing leases. Our leases are included in “Right-of-use-assets” and “Lease liabilities” in our Condensed Consolidated Balance Sheets. Our leases have various lease terms, some of which include options to extend. Lease expense is recognized on a straight-line basis over the lease term.

Operating lease expense for the three months ended March 31, 2024 and 2023 was $282 thousand and $237 thousand, respectively, and is reported as “Cost of sales”, “Engineering, design and product development expense”, “Selling and marketing expense”, and “General and administrative expense” in the Condensed Consolidated Statements of Operations. Operating lease expenses include short-term lease costs, which were immaterial during the periods presented.

The following information represents supplemental disclosure for the statement of cash flows related to operating leases (in thousands):

	Three Months Ended
	March 31,
	2024		2023
Operating cash outflows from leases	$	257	$	252

The following summarizes additional information related to our leases as of March 31, 2024 and December 31, 2023:

	March 31, 2024			December 31, 2023
Weighted average remaining lease term (in years)		1.5			1.7
Weighted average discount rate		4.4	%		4.4	%

The maturity of the Company’s operating lease liabilities as of March 31, 2024 and December 31, 2023 were as follows (in thousands):

	March 31, 2024		December 31, 2023
2024		727		985
2025		712		713
2026		22		22
Total undiscounted lease payments		1,461		1,720
Less imputed interest		52		71
Total lease liabilities	$	1,409	$	1,649