Lease Commitments

9 Months Ended

Sep. 27, 2024

5. Lease Commitments

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 nine months ended September 27, 2024 (in thousands):


Operating lease cost	$	882

Total net lease costs	$	882

The weighted average remaining lease term is 3.7 years. The weighted average discount rate utilized is 5.8%. For the quarter and nine months ended September 27, 2024, the Company paid $0.3 million and $1.1 million, respectively, from operating cash flows for its operating leases.

Future minimum lease commitments under non-cancellable operating leases as of September 27, 2024, were as follows (in thousands):


2024 (excluding the nine months ended September 27, 2024)	$	355
2025		1,055
2026		863
2027		791
2028 and thereafter		660
Total lease payments		3,724
Less imputed interest		(510	)
Total	$	3,214

As of September 27, 2024, the Company does not have any additional material operating leases that have not yet commenced.