In May 2024, the Company entered into an operating lease agreement for additional office and warehouse space in Sunnyvale, California. The lease commenced when the Company obtained early use of the property beginning on June 1, 2024. The lease terminates on January 31, 2027.

The Company’s ROU asset relates to its leased corporate offices and warehouse in Sunnyvale, CA. Supplemental balance sheet information related to leases was as follows (in thousands):


	September 30,			December 31,
	2024			2023
Operating Lease
Operating lease right-of-use asset	$	2,365		$	2,160

Operating lease liability, current		1,029		694
Operating leases liability, long-term		1,599			1,677
Total operating lease liabilities	$	2,628		$	2,371
Weighted average remaining lease term (years)		2.3		3.1
Weighted average remaining discount rate		7.17	%		6.25	%

The Company leases office space and warehouse space under non-cancelable operating leases. As of September 30, 2024, and December 31, 2023, the future minimum lease payments under the non-cancelable operating lease are as follows (in thousands):


	September 30,
Operating Leases:	2024
2024	$	269
2025		1,216
2026		1,255
2027		107
Total undiscounted lease payments		2,847
Imputed interest		(219	)
Net Lease Liabilities	$	2,628

Lease expense recognized under the leases, including additional rent charges for property management, operating lease costs, and variable lease costs, was $297,000 and $196,000 for the three months ended September 30, 2024 and 2023, respectively, and $730,000 and $625,000 for the nine months ended September 30, 2024 and 2023, respectively. Variable rent expense recognized for operating leases was $52,000 and $44,000 for the three months ended September 30, 2024 and 2023, respectively, and $216,000 and $211,000 for the nine months ended September 30, 2024 and 2023, respectively. Operating lease cost was $245,000 and $152,000 for the three months ended September 30, 2024 and 2023, respectively, and $514,000 and $414,000 for the nine months ended September 30, 2024 and 2023, respectively.

The Company’s cash payments related to the leases were $204,000 and $198,000 for the three months ended September 30, 2024 and 2023, respectively, and $641,000 and $593,000 for the nine months ended September 30, 2024 and 2023, respectively.