NOTE 11 – LEASES

The Company occupies office and other facilities under lease agreements that expire at various dates. In addition, office, production and transportation equipment are leased under agreements that expire at various dates. The Company does not have any finance leases. Total operating lease costs were $0.37 million and $0.43 million for the three months ended September 30, 2024 and 2023, respectively, and $1.26 million and $1.32 million for the nine months ended September 30, 2024 and 2023, respectively. Short-term lease costs during the fiscal quarters ended September 30, 2024 and 2023 were not material.

As of September 30, 2024 and December 31, 2023, the Company had short-term lease liabilities of $0.78 million and $1.25 million, respectively. The table below presents total operating lease right-of-use assets and lease liabilities as of:

The table below presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating operating lease right-of-use assets:

On May 7, 2024, the Company terminated a lease agreement and agreed to a settlement payment of $0.20 million, of which $0.15 million was paid as of June 30, 2024. The remaining balance is due through May 2025. As a result, the Company wrote off the related right-of-use asset and lease liability in the amount of $4.28 million and $4.44 million, respectively.

During the second fiscal quarter of 2024, the Company terminated a lease agreement and wrote off the related right-of-use asset and lease liability in the amount of $1.64 million and $2.79 million, respectively.