8. LEASES

The Company has operating leases for office and manufacturing space in California and office space in Taiwan, Republic of China, with remaining lease terms ranging from under one year to approximately two years as of December 31, 2025.

Leases with an initial term of twelve months or less are not accounted for in the balance sheet; these are limited to minor leases in Taiwan, which are excluded from amounts presented in the following tables. The operating leases include certain variable payments related to operating expenses, which are billed by the landlord, as is customary with these types of charges for office space.

The Company’s existing leases contain escalation clauses and renewal options. The Company has evaluated several factors in assessing whether it is reasonably certain that the Company will exercise a contractual renewal option. For leases with renewal options that are reasonably certain to be exercised, the Company includes the renewal term in the total lease term used in deriving the right-of-use asset and lease liability. The Company’s main office lease includes a renewal option of three years, which was excluded after evaluation of those factors.

Amounts comprising total lease expense, reflected in general and administrative expenses and costs of revenue (including amounts capitalized as overhead to inventory), were as follows.


	Years Ended December 31,
	2025		2024
Operating lease expense	$	474	$	476
Short-term lease expense	37		34
Total lease expense	$	511	$	510

Lease-related amounts reflected in the balance sheet and data related thereto were as follows.


	December 31, 2025			December 31, 2024
Operating lease right-of-use assets	$	843		$	1,195

Operating lease liabilities - current	$	410		$	351
Operating lease liabilities – long-term	477			887
Total operating lease liabilities	$	887		$	1,238

Weighted average remaining lease term	2.0 years			3.0 years
Weighted average discount rate	11.8		%	11.8		%


	Years Ended December 31,
	2025		2024
Variable lease payments related to operating leases	$	—	$	39
Cash payments related to operating leases	$	474	$	437

Future minimum lease payments under non-cancellable leases are as follows as of December 31, 2025.



2026	488
2027	503

Less: interest	(104)
Total operating lease liabilities	$	887

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.

CapsoVision, Inc Leases Disclosure

About Leases Disclosures

Other Available Disclosures