The Company has operating leases for facilities and finance leases for office equipment. Leases with an initial term of 12 months or less are not recorded in the balance sheet. The Company determines if an arrangement is a lease at inception of a contract.

Right of Use (“ROU”) assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the net present value of fixed lease payments over the lease term. The Company's lease term is deemed to include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. ROU assets also include any advance lease payments made and exclude lease incentives. As most of the Company's operating leases do not provide an implicit

rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on a collateralized basis. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Operating fixed lease expense and finance lease depreciation expense are recognized on a straight-line basis over the lease term.

The Company's lease cost for the three and nine months ended September 30, 2022 and 2021, respectively, included the following components:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Operating lease costs	$	119	$	121	$	377	$	333
Short-term lease costs		10		41		60		123
Variable lease costs		2		5		4		9
Amortization of finance lease assets		12		18		47		53
Interest on finance lease liabilities		1		2		4		6
Total lease cost	$	144	$	187	$	492	$	524

The table below summarizes the Company's scheduled future minimum lease payments under operating and finance leases recorded on the balance sheet as of September 30, 2022:


Year	Operating Leases			Finance Leases
2022 (remaining three months)	$	131		$	13
2023		668			44
2024		591			33
2025		501			15
2026		494			5
Thereafter		2,180			0
Total minimum payments required		4,565			110
Less: amount representing interest		(804	)		(6	)
Present value of net minimum lease payments		3,761			104
Less: current maturities of lease obligations		(509	)		(44	)
Long-term lease obligations	$	3,252		$	60

The table below presents supplemental cash flow information related to leases during the three and nine months ended September 30, 2022 and 2021, respectively:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	167	$	160	$	553	$	413
Operating cash flows for finance leases	$	1	$	2	$	4	$	6
Financing cash flows for finance leases	$	11	$	25	$	48	$	54

The following table summarizes the classification of ROU assets and lease liabilities as of September 30, 2022 and December 31, 2021:


Leases	Consolidated Balance Sheet Classification	September 30, 2022		December 31, 2021
Assets:
Operating right-of-use assets	Other noncurrent assets	$	2,092	$	2,289
Finance right-of-use assets	Other noncurrent assets		99		148
Total leased assets		$	2,191	$	2,437
Liabilities:
Current
Operating lease liabilities	Accrued liabilities	$	509	$	475
Finance lease liabilities	Accrued liabilities		44		62
Noncurrent
Operating lease liabilities	Long-term liabilities		3,252		3,600
Finance lease liabilities	Long-term liabilities		60		92
Total lease liabilities		$	3,865	$	4,229

The Company completed the transition of antenna manufacturing from its Tianjin, China facility to contract manufacturers during 2022. In April 2022, the Company vacated the manufacturing facility and moved a small team of employees associated with sourcing, quality, and local customer support to a new leased facility in Tianjin, China. The Company entered into a two-year lease ending December 31, 2023 for 1,694 square feet of space in a new office located in Tianjin, China. The Company recognized a present value of the right of use asset of $0.1 million for this new office lease.

As a cost saving initiative, the Company separated all 14 employees from its Beijing office in November 2021 and the Company closed this office in the first quarter of 2022. In April 2022, the Company entered into a two-year office lease ending April 30, 2024 for 350 square feet of office space. The Company recognized a present value of the right of use asset of $0.1 for this new office lease. Four former employees in Beijing were engaged through a third-party employment agency and will provide sales and technical support from the new smaller office.

As part of the acquisition of Smarteq on April 30, 2021, the Company assumed an office lease and two automotive leases. The office in Kista, Sweden has 4,080 square feet used for engineering, sales, and administration with a lease term ending July 31, 2023. On the acquisition date, the Company recorded $0.2 million for each of the ROU assets and the lease liabilities. In October 2022, the office lease was extended for 36 months ending July 31, 2026.