Leases
Facility leases
The Company leases its corporate headquarters and primary research and development facility located in Vancouver, Washington in a 77,974 square foot facility that includes general administrative office and laboratory space. The corporate headquarters lease commenced in December 2020 and ends in April 2028, with an option to renew the lease for an additional five-year term, at then-current market rates. As part of the lease agreement, the lessor provided tenant incentives in the amount of $3.1 million. The Company has a one-time option to terminate the lease after five years. For the Company’s facility lease agreement, the Company is responsible for taxes, insurance and maintenance costs.
The components of lease expense are as follows (in thousands):
For the Years Ended December 31,
20242023
Operating lease cost1,716 1,712 
Variable lease cost446 484 
Short-term lease cost203 497 
$2,365 $2,693 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows related to operating leases
$2,266 $2,361 
Future undiscounted lease payments for the Company’s lease liabilities as of December 31, 2024 are as follows (in thousands):
Operating leases
Finance leases
2025$2,036 $81 
20262,097 — 
20272,101 — 
2028672 — 
2029— — 
Thereafter— — 
Total future lease payments6,906 81 
Less: Imputed interest(869)(3)
Present value of lease liabilities$6,037 $78 
Additional information related to the Company’s leases is as follows:
December 31, 2024December 31, 2023
Weighted average remaining lease term (in years)
Operating leases3.24.1
Finance leases0.50.9
Weighted average discount rate
Operating leases%%
Finance leases%%

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.