The Company has operating leases for office space and, to a much lesser extent, operating leases for equipment. The Company’s office leases are between terms of 1 year and 5 years. Rents usually increase annually in accordance with defined rent steps or are based on current year consumer price index adjustments. Some of the lease agreements contain one or more of the following provisions: tenant allowances, rent holidays, lease premiums, and rent escalation clauses. There are typically no purchase options, residual value guarantees or restrictive covenants. When renewal options exist, the Company generally does not deem them to be reasonably certain to be exercised, and therefore the amounts are not recognized as part of the lease liability nor the right of use asset.

The components of lease expense were as follows for the six months ended June 28, 2024 (in thousands):


Operating lease cost	$	582

Total net lease costs	$	582

The weighted average remaining lease term is 3.7 years. The weighted average discount rate utilized is 5.6%. For the quarter and six months ended June 28, 2024, the Company paid $0.4 million and $0.8 million, respectively, from operating cash flows for its operating leases.

Future minimum lease commitments under non-cancellable operating leases as of June 28, 2024, were as follows (in thousands):


2024 (excluding the six months ended June 28, 2024)	$	611
2025		911
2026		769
2027		693
2028 and thereafter		494
Total lease payments		3,478
Less imputed interest		(429	)
Total	$	3,049

As of June 28, 2024, the Company does not have any additional material operating leases that have not yet commenced.