LEASES
The Company leases space under non-cancelable operating leases for several office and manufacturing locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions.
Most leases include one or more options to renew. The Company regularly evaluates the renewal options, and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term.
The Company’s leases also include a right to use state-owned land in mainland China with lease terms of 50 years expiring in 2070, for which an upfront lump-sum payment was made during the year ended December 31, 2022.
The components of lease expense were as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2024 | | 2023 | | 2022 |
| Operating lease cost | $ | 3,815 | | | $ | 3,580 | | | $ | 2,816 | |
| Short-term lease cost | 1,790 | | | 923 | | | 786 | |
| Lease cost | $ | 5,605 | | | $ | 4,503 | | | $ | 3,602 | |
Supplemental cash flow information related to operating leases was as follows for the years ended December 31, 2024, 2023, and 2022:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2024 | | 2023 | | 2022 |
| Operating cash outflow from operating leases | $ | 3,647 | | | $ | 3,580 | | | $ | 2,816 | |
| | | | | | | | | | | | | | | | | |
| Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ | 1,781 | | | $ | 8,195 | | | $ | 1,054 | |
Maturities of lease liabilities for all operating leases were as follows as of December 31, 2024:
| | | | | |
| December 31, 2024 |
| 2025 | 2,376 | |
| 2026 | 1,607 | |
| 2027 | 1,462 | |
| 2028 and thereafter | 1,118 | |
| Total lease payments | $ | 6,563 | |
| Less: Interest | (591) | |
| Present value of lease liabilities | $ | 5,972 | |
The weighted average remaining lease terms and discount rates for all operating leases, excluding land-use right, were as follows as of December 31, 2024 and 2023:
| | | | | | | | | | | |
| December 31, |
| 2024 | | 2023 |
| Remaining lease term and discount rate: | | | |
| Weighted average remaining lease term (years) | 3.57 | | 3.44 |
| Weighted average discount rate | 3.58 | % | | 3.91 | % |