The Company has a lease agreement with 237 North First Street Holdings, LLC for an office space located at 4453 North First Street in San Jose, California (the “Lease”). The Lease has a term of 128 months from the amended commencement date in April 2020. The annual base rent increases each year to certain fixed amounts over the course of the term. In addition to the base rent, the Company will also pay operating expenses, insurance expenses, real estate taxes and a management fee. The Lease allows for an option to expand, wherein the Company has the right of first refusal to rent additional space in the building. The Company has a one-time option to extend the Lease for a period of 60 months and may elect to terminate the Lease, via written notice to the Landlord, in the event the office space is damaged or destroyed. These options were not recognized as part of operating lease right-of-use assets and operating lease liabilities.

The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the Consolidated Balance Sheet as of December 31, 2025 (in thousands):


Years ending December 31,	Amount
2026	$	7,492
2027		6,002
2028		4,869
2029		4,871
2030		4,232
Thereafter		687
Total minimum lease payments		28,153
Less: amount of lease payments representing interest		(3,172	)
Present value of future minimum lease payments		24,981
Less: current obligations under leases		(6,310	)
Long-term lease obligations	$	18,671

As of December 31, 2025, the weighted-average remaining lease term for the Company’s operating leases was 4.5 years, and the weighted-average discount rate used to determine the present value of the Company’s operating leases was 7.6 %.

Operating lease costs included in research and development and selling, general and administrative costs in the Company’s Consolidated Statements of Income were $5.9 million, $5.5 million and $6.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities were $7.2 million, $6.1 million and $6.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.