The Company made certain assumptions and judgments when applying ASC 842 and it elected not to recognize right-of-use assets and lease liabilities for short-term leases (lease terms of twelve months or less).

Operating lease arrangements primarily consist of office, warehouse and test house leases expiring during different years through 2026. The facility leases have original terms of approximately two to five years and may contain options to extend up to five years and/or terminate early. Options to extend are included in leased right-of-use assets and lease liabilities in the consolidated balance sheet when we are reasonably certain to renew a lease. Since the implicit rate of such leases is unknown and we may not be reasonably certain to renew leases, the Company elected to apply a collateralized incremental borrowing rate to facility leases on the original lease term in calculating the present value of future lease payments. As of September 30, 2024 and December 31, 2023, the weighted average discount rate for operating leases were 4.5% and 3.8%, respectively. As of September 30, 2024 and December 31, 2023, the weighted average remaining lease term for operating leases was 1.4 years and 1.8 years, respectively.

The Company has entered into various short-term operating leases, primarily for test houses and office equipment with initial terms of 12 months or less. These short-term leases are not recorded on the Company’s consolidated balance sheet, and the related short-term lease expense was $57,700 and $23,000, for the three months ended September 30, 2024 and 2023, respectively. Total operating lease cost was $0.3 million for each of the three months ended September 30, 2024 and 2023.

The table below presents aggregate future minimum payments due under leases, reconciled to lease liabilities included in the consolidated balance sheet as of September 30, 2024 (in thousands):


	Estimated future lease obligation
2024 (remaining three months)	$	243
2025		786
2026		36
Total minimum payments		1,065
Less imputed interest		(26	)
Less unrealized translation gain		(10	)
Total lease liabilities		1,029
Less short-term lease liabilities		(848	)
Long-term lease liability	$	181