Leases

3 Months Ended

Mar. 31, 2024

13.

Leases

As a lessee, the Company currently leases office space and vehicles in the United States, Italy, Israel, China, Philippines and Thailand. All of the Company leases are classified as operating leases. The Company has no leases classified as finance or sales-type leases. For leases with terms greater than 12 months, the Company records the related assets and obligations at the present value of lease payments over the term. Many of its leases include rental escalation clauses, renewal options and/or termination options that are factored into the Company’s determination of lease payments.

When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of its leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The majority of the Company’s leases have remaining lease terms of one to seven years, some of which include options to extend the leases for up to eight years, and some of which include options to terminate the leases within one year.

The components of lease expense are as follows (in thousands):


	Three Months Ended March 31,
(in thousands)	2024		2023
Operating lease costs	$	334	$	194
Variable lease costs		92		62
Total lease cost	$	427	$	256

Other information related to leases was as follows:


	Three Months Ended March 31,
Supplemental Cash Flows Information (in thousands)	2024		2023
Operating lease right of use assets obtained in exchange for operating lease liabilities	$	82	$	1,266
Cash paid for amounts included in the measurement of lease liabilities	$	335	$	174


	March 31, 2024			December 31, 2023
Weighted average remaining lease term (years)		2.7			2.9
Weighted average discount rate		5.0	%		8.5	%

Future maturities of lease liabilities were as follows as of March 31, 2024:


(in thousands)	Operating Leases
Remainder of 2024	$	1,020
2025		610
2026		443
2027		346
2028		136
Thereafter		17
Total future minimum lease payments	$	2,572
Less: imputed interest		179
Present value of lease liabilities	$	2,393