Leases
We entered into operating lease agreements primarily for offices and manufacturing spaces located in various locations with lease periods expiring between 2026 and 2030. We have an option to extend the office lease located in California for five years. From time to time, we enter into lease agreements in the normal course of business. We did not enter any new material lease agreements during the fiscal years 2025 or 2024. During fiscal year 2025, the Company modified an existing manufacturing facility lease to add additional leased space.
The following table summarizes the components of lease costs (in thousands).
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Fiscal Years |
| | | | | | | | | 2025 | | 2024 | | |
| Operating lease cost | | | | | | | | | $ | 4,365 | | | $ | 4,278 | | | |
The following table shows supplemental lease information.
| | | | | | | | | | | | | | |
| | As of |
| Operating leases | | December 28, 2025 | | December 29,
2024 |
| Weighted-average remaining lease term | | 4.1 years | | 5.0 years |
| Weighted-average discount rate | | 8.5% | | 8.5% |
The following table shows supplemental cash flow information related to leases (in thousands).
| | | | | | | | | | | |
| Fiscal Years Ended |
| December 28, 2025 | | December 29, 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Operating cash flows from operating leases | $ | 4,542 | | | $ | 3,645 | |
| Lease liabilities arising from obtaining ROU assets: | | | |
| Operating leases | — | | | 3 | |
Maturities of Lease Liabilities
The following is a schedule of maturities of lease liabilities as of December 28, 2025 (in thousands).
| | | | | |
| Operating leases |
| 2026 | $ | 3,906 | |
| 2027 | 3,927 | |
| 2028 | 3,986 | |
| 2029 | 2,855 | |
| 2030 | 1,098 | |
| |
| Total | 15,772 | |
| Less: imputed interest | (1,379) | |
| Present value of lease liabilities | $ | 14,393 | |
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.