10. Leases

The Company has a lease agreement with 237 North First Street Holdings, LLC for an office space located at 4453 North First Street in San Jose, California (the “Lease”). The Lease has a term of 128 months from the amended commencement date in April 2020. The annual base rent increases each year to certain fixed amounts over the course of the term. In addition to the base rent, the Company will also pay operating expenses, insurance expenses, real estate taxes and a management fee. The Lease allows for an option to expand, wherein the Company has the right of first refusal to rent additional space in the building. The Company has a one-time option to extend the Lease for a period of 60 months and may elect to terminate the Lease, via written notice to the Landlord, in the event the office space is damaged or destroyed. These options were not recognized as part of operating lease right-of-use assets and operating lease liabilities.

The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the Consolidated Balance Sheet as of December 31, 2025 (in thousands):

 

Years ending December 31,

 

Amount

 

2026

 

$

7,492

 

2027

 

 

6,002

 

2028

 

 

4,869

 

2029

 

 

4,871

 

2030

 

 

4,232

 

Thereafter

 

 

687

 

Total minimum lease payments

 

 

28,153

 

Less: amount of lease payments representing interest

 

 

(3,172

)

Present value of future minimum lease payments

 

 

24,981

 

Less: current obligations under leases

 

 

(6,310

)

Long-term lease obligations

 

$

18,671

 

 

As of December 31, 2025, the weighted-average remaining lease term for the Company’s operating leases was 4.5 years, and the weighted-average discount rate used to determine the present value of the Company’s operating leases was 7.6 %.

Operating lease costs included in research and development and selling, general and administrative costs in the Company’s Consolidated Statements of Income were $5.9 million, $5.5 million and $6.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities were $7.2 million, $6.1 million and $6.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 24, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 28, 2022
2020Feb 26, 2021
2019Feb 26, 2020

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.