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OPERATING LEASE COMMITMENTS

9 Months Ended

Sep. 30, 2025

NOTE 5 – OPERATING LEASE COMMITMENTS

We have commitments under non-cancellable operating leases and other agreements, primarily for factory and office space, with initial or remaining terms of one year or more as of September 30, 2025, are as follows:

	September 30, 2025
(in thousands)
2025 (remaining)	$	196
2026		775
2027		694
2028		433
2029		369
Thereafter		-
Total		2,467
Less imputed interest		(206	)
Total operating lease liabilities	$	2,261

For the largest lease component, the Company has three facilities with our headquarters and primary engineering and operational functions located in Redmond, Washington. Our two subsidiary facilities in Munich, Germany and Shanghai, China provide extended worldwide sales, service, engineering and operation services. The components of our lease expense for the three months and nine months ended September 30, 2025, include facility related operating lease costs of $185,000 and $550,000, respectively, and short-term lease costs of $9,800 and $29,000, respectively. In the prior year, components of our lease expense for the three months and nine months ended September 30, 2024, include facility related operating lease costs of $214,000 and $629,000, respectively, and short-term lease costs of $10,000 and $9,000, respectively. There were no new operating leases during the nine months ended September 30, 2025.

The Redmond, Washington headquarters facility lease runs to October 31, 2029, at approximately 20,460 square feet. The lease for the facility located in Shanghai, China runs to October 31, 2027, at approximately 19,400 square feet. The lease for the facility located near Munich, Germany runs to August 2027, at approximately 4,895 square feet.

The following table presents supplemental balance sheet information related to leases as of September 30, 2025, and December 31, 2024:

	September 30, 2025		December 31, 2024
(in thousands)
Right-of-use assets (Long-term other assets)	$	2,164	$	2,704
Lease liability-short term (Other accrued liabilities)	$	682	$	640
Lease liability-long term (Operating lease liabilities)	$	1,579	$	2,064

At September 30, 2025, the weighted average remaining lease term is 3.4 years and the weighted average discount rate used is 5%.