Leases

6 Months Ended

Jun. 30, 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. On May 31, 2024, we entered into an amendment to extend the lease on our facility in Ithaca, New York, which resulted in a right-of-use asset obtained in exchange for a new operating lease liability of $465 thousand. The lease amendment provides for an extension of the lease for an additional year from May 31, 2025 to May 31, 2026, with an option to extend for an additional year. Lease expense is recognized on a straight-line basis over the lease term.

Operating lease expense for the six months ended June 30, 2024 and 2023 was $500 thousand and $483 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):

	Six Months Ended,
	June 30,
	2024		2023
Operating cash outflows from leases	$	510	$	504

The following summarizes additional information related to our leases as of June 30, 2024 and December 31, 2023:

	June 30, 2024			December 31, 2023
Weighted average remaining lease term (in years)		1.7			1.7
Weighted average discount rate		7.5	%		4.4	%

The maturity of the Company’s operating lease liabilities as of June 30, 2024 and December 31, 2023 were as follows (in thousands):

	June 30, 2024		December 31, 2023
2024		512		985
2025		1,014		713
2026		237		22
Total undiscounted lease payments		1,763		1,720
Less imputed interest		120		71
Total lease liabilities	$	1,643	$	1,649