LEASES

12 Months Ended

Dec. 31, 2024

8. LEASES

The Company leases real estate, including offices and manufacturing facilities and has entered into various other agreements with respect to assets used in conducting its business. The Company’s leases have remaining lease terms ranging from 1.33 years to 9.01 years. Some of the lease agreements contain rent holidays and rent escalation clauses that were included in the calculation of the right of use of assets and lease liabilities.

The Company’s building leases are subject to annual operating cost charges that may change from time to time during the lease term. The Company’s lease liabilities are not remeasured as a result of changes to the operating costs; rather, these changes are treated as variable lease payments and recognized in the period in which the obligation for the payments was incurred. The annual operating costs are a non-lease component of the contracts; however, the Company has elected to adopt the practical expedient whereby such costs are not separated from the lease component.

The following table presents the components of lease cost (in thousands):


	Years ended December 31,
	2024		2023
Operating lease cost	$	1,560	$	1,675
Variable lease cost	461		416
Sublease income	—		125

The following table presents the weighted-average lease terms and discount rates for operating leases:


	As of December 31,
	2024		2023
Lease term and discount rate:
Weighted average remaining lease term, in years
Operating leases	8.4		9.7


Weighted average discount rate(1)
Operating leases	10.1	%	9.5	%

(1) For the lease contracts denominated in foreign currencies, the weighted average discount rate was calculated by converting the foreign currency amounts to equivalent amounts in USD.

Future minimum operating lease payment under non-cancelable leases as of December 31, 2024, were as follows (in thousands):


	Operating Leases
Year Ending December 31,
2025	$	1,512
2026	1,392
2027	1,272
2028	1,293
2029	1,191
Thereafter	5,057
Total future minimum lease payments	11,717
Less: Interest	(3,816)
Total lease liabilities	$	7,901