Leases

12 Months Ended

Dec. 31, 2024

18. LEASES

The Company has operating leases for its various facilities, including its primary locations in College Park, Maryland; Bothell, Washington; and Arlesheim, Switzerland. The College Park, Maryland facility is used for research and development, servicing customers and corporate functions and is leased from UMD. The Bothell, Washington facility is used for manufacturing, research and development, servicing customers, and general office space. The Arlesheim, Switzerland facility is used for servicing customers and general office space. Both the College Park, Maryland, and Bothell, Washington, leases expire in 2030 and the Arlesheim, Switzerland lease expires in 2029. As of December 31, 2024 and 2023, the Company's weighted-average remaining lease term was 5.2 years and 6.5 years, respectively, and the weighted-average discount rate was 8.2% and 9.0%, respectively.

The Bothell, Washington facility lease includes a landlord-provided tenant improvement allowance to offset a portion of the costs of the construction of leasehold improvements. The Company determined that the leasehold improvements will be Company-owned, and as such, reflected the lease incentive as a reduction of lease payments used to measure the operating lease liability and ROU asset as of the lease commencement date.

The components of lease cost were as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Operating lease cost(1)
Fixed lease cost	$	2,522	$	1,458	$	763
Short-term cost		221		145		79
Total operating lease cost	$	2,743	$	1,603	$	842

(1)

The lease costs are reflected in the consolidated statements of operations as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Cost of revenue	$	254	$	145	$	53
Research and development		1,670		722		612
Sales and marketing		175		84		46
General and administrative		644		652		131
Total operating lease cost	$	2,743	$	1,603	$	842

Supplemental cash flow and other information related to operating leases was as follows (in thousands):


	Year Ended December 31,
	2024			2023			2022
Cash payments (receipts) included in the measurement of operating lease liabilities, net	$	(2,251	)	$	(1,790	)	$	644

As of December 31, 2024, maturities of operating lease liabilities are as follows (in thousands):


	Amount
Year Ending December 31,
2025	$	3,663
2026		4,193
2027		4,257
2028		4,358
2029		3,933
Thereafter		1,511
Total lease payments	$	21,915
Less: imputed interest		(4,190	)
Present value of operating lease liabilities	$	17,725